f

JDE PEET’S N.V.

ANNUAL REPORT 2023

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

2

Supplementary
information

JDE PEET'S AT A GLANCEJDE Peet’s, whose origins date back to 1753, is theworld's leading pure-play coffee & tea company. We
provide customers and consumers with coffee & tea in
100+ markets through a portfolio of over 50 brands,
including L’OR, Peet’s, Jacobs, Senseo, Tassimo,
Douwe Egberts, OldTown, Super, Pickwick andMoccona.

OUR PURPOSE

responsibly sourced
coffee 1

Unleash the possibilities
of coffee & tea to create abetter future1

Sales by segment (EUR mm)

OUR BUSINESSWe are a global business with a supply
chain reaching over 100+ markets. To
truly understand the needs of ourcustomers and consumers, we work at
regional and local levels to surpass
their evolving expectations. Our
business is organised across fourcommercial segments, taking into
account coffee & tea cultures acrossdifferent geographies.

83.8%

4,100

cups of coffee & tea areserved by JDE Peet's

1,153

LARMEAPEET'S

791
APAC

1

markets

women in leadership
positions24
countries

42

Number 1 or 2
position in

facilities

markets

Europe

1,498

100+

41.3%

39

4,719
Every second

Present in

These markets
generated73%

of total sales

21,196
employees

101
nationalities

63
active projects withsmallholder farmers

Responsibly sourced green coffee covered by a sustainability scheme recognised by the coffee industry, such as GCP Equivalence Mechanism, including, Enveritas, Rainforest Alliance, 4C, Fairtrade, etc. As used in this Annual Report, a product or material which is “responsibly sourced” means that such productor material satisfies the applicable definition contained in the section Basis of preparation of the Annual Report.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

3.9%

Performance review
and outlook

Governance andrisk management

Sales(EUR mm)

Organic
changeAdj EBIT(EUR mm)

Organic
changeEurope

4,719

4.0 %

1,006

8.6 %

LARMEA

1,498

4.7 %

147

(21.1)%

Peet's

1,153

3.9 %

141

(1.0)%

APAC

791

2.1 %

135

15.2 %

Segment

Organic sales growth128.1bn3

Supplementary
information

Serve
more cups

Masterexecution

Grow
togetherthrough arelentless focus
on attracting
customers

which fuels our
growth from
quality anddiscipline ineverything we doby championing
an inclusive
ecosystem

Cups served€ 6.6bn

Financialstatements

THE THREE PILLARS OF OUR STRATEGYSALES AND ADJUSTED EBIT SPLIT BY SEGMENT€ 8.2bn
Total sales

Strategy andvalue creation

Introduction

SELECTED SDGs
We are proud to embrace the
UN Sustainable Development
Goals (SDGs). We operate inand source materials frommany markets, and we arecommitted to their socioeconomic development. Our
focus on the impact we makealong the entire value chain
has led us to concentrate on
the SDGs as disclosed aspart of the double materiality
table.

Our strategy (page 30)

In-Home€ 1.6bn

Our sustainability programme isfocused on three pillars:

Responsible Sourcing

Minimising Footprint

Connecting People

Fostering thriving agricultural
supply chains

Reducing our environmental
impact step-by-step

Engaging our employees
and our communities

Away-from-Home
Common Grounds (page 42)

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Strategy andvalue creation

Introduction

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

4

TABLE OF CONTENTSINTRODUCTION

5GOVERNANCE AND RISK MANAGEMENT

152

FINANCIAL STATEMENTS

203

2023 key highlights

6

Our Board of Directors

153

Consolidated income statement

205

Introduction to the annual report8

Report of the non-executive Directors

157

Consolidated statement of comprehensive income206

Who we are12

Our Executive Committee

162

Consolidated statement of financial position

207

Our sustainable supply chain

15

Corporate governance164

Consolidated statement of changes in equity

208

Engaging our stakeholders

17

Corporate governance statement

170

Consolidated statement of cash flows

210

External trends and developments

24

Remuneration report

179

Notes to the consolidated financial statements

211

Ethics and compliance

188

Statements on release from the duty to disclose financial statements

273

Responsible tax

193

Company financial statements

274

Risk management

195

Notes to the company financial statements

277

STRATEGY AND VALUE CREATION28

Our value creation story

29

Other information

283

Our strategy

30

Independent auditor’s report285

Our approach

34

PERFORMANCE REVIEW AND OUTLOOK35

SUPPLEMENTARY INFORMATION

298

Investor relations

299

Financial performance

36

Forward-looking statements

303

Common Grounds

42

Glossary

304

Responsible Sourcing

45

Minimising Footprint

68

Connecting People

95

Respecting human rights

128

Non-financial information

134

Disclaimer — This copy of the annual report of JDE Peet’s N.V. for the year 2023 is not in the ESEF-format as specified by the European Commission in Regulatory Technical Standard on ESEF (Regulation (EU) 2019/815). The ESEF reporting package is available at www.jdepeets.com

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

INTRODUCTION
2023 key highlights

5

Introduction to the annual report

8

Who we are12

Our sustainable supply chain

15

Engaging our stakeholders

17

External trends and developments

24

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

5

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

6

Supplementary
information

2023 KEY HIGHLIGHTS

Q1•

Fitch Ratings upgraded JDE Peet's credit ratingfrom “BBB-” to “BBB” with a stable outlook. The
upgrade underscores our operating strength, strong
financial structure, and financial discipline.

•

JDE Peet's launched Ginger Goodness tea, a
powerful blend that responds to the growing
demand from consumers for healthy ingredients.
The premium herbal segment is currently the fastest
growing tea segment.

••

We substantially increased our sustainability
ambitions, defining a roadmap of initiatives that will
enable us to set new and stronger SBTi
commitments to net-zero, and build an integrated
carbon accounting platform to track and accelerate
the delivery of our ESG objectives.
JDE Peet's announced the planned launch of a fully
compostable capsule, which will help contribute to acircular economy. This new-to-the-world technology
enables a high-quality, in-cup experience that was
not possible in existing compostable alternatives.

Q2•

We launched a Senseo sustainability campaign in
the Netherlands and France. And alongside
Senseo’s compostable pads and recycling-readypackaging, we launched the Senseo original Plus
Eco machine, which uses 80% or more recycledplastics and aims to create a coffee with a low
environmental impact.

•

JDE Peet’s announced its intention to combine its
Out-of-Home and CPG Europe segments into one
European segment. This organisational change
enables our European markets to apply a true omnichannel approach, a model that we successfully
apply in all of our geographies. Additionally, it allows
us to more effectively leverage our brands andreduce complexity.

•

JDE Peet’s saw its ESG rating raised significantly to“Prime Status” by ESG rating agency ISS, whichmoves us up to the top decile in our industry group,comprising 228 companies.

•

In Thailand, our SUPER brand extended its Purerange with the launch of SUPER Espresso, as it
responded to the growing demand in Asia for
healthier options. Across Asia, SUPER is
progressively reducing sugar and fat content in its
Instant Mixes products without compromising on
taste – in line with our Healthy Indulgenceprogramme.

•

In the Netherlands, we introduced the Finest
Selection Loose Leaf Tea, responding to consumers,
particularly from younger generations, who seek richand delicate sensory experiences and quality loose
leaf tea.

•

In Spain, we proudly introduced our new L’OR
Masterbrand Awaken your senses campaign, whichbrings to life our purpose “to unleash pleasure”. The
campaign is directed by the famous French photoand cinematographer Bruno Aveillan. By the end of2023, the campaign had been launched in morethan 15 markets.

•

We continued our L’OR premium brand building bylaunching a new L’OR Limited Creation Arabica
Bourbon, offering consumers a unique taste
sensation for a limited time only. We also expanded
our L’OR brand by offering a new decaf variation
with Colombian origins, and a new large-size format
from our best-selling products.

•

In June, one of our plants took an important step
forward in our Minimising Footprint journey, byleveraging waste heat from our roasters to provide
heating and hot water for sanitation.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

JDE Peet’s accelerated its sustainability agenda with
the introduction of a breakthrough, recyclable paper
pack for soluble coffee, the first of its kind in thecoffee market. The coffee from the new paper pack
will have the lowest carbon footprint from across ourcurrent product range.

•

JDE Peet’s announced the intended acquisition of
Maratá’s coffee & tea business in Brazil, the largest
coffee market in the world in terms of cups
consumed. The planned acquisition will expand our
emerging markets presence, complement ourexisting portfolio of brands predominantly sold in thesouthern regions of Brazil, and increase our scaleand national coverage in the country. The
acquisition was successfully completed in January
2024.

•

•

S&P CSA, a leading ESG ratings provider, upgraded
JDE Peet’s ESG rating to the top fourth percentile
within the food subindustry.
The Board of Directors approved the cancellation of
15.3 million treasury shares. This process wascompleted in July 2023, which reduced the number
of issued shares.

7

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information

Q4

Q3
•

Financialstatements•

Instant coffee remains critical to our business, andwe added affordable refills to Jacobs’ portfolio,
addressing the inflationary environment andunlocking more sustainable solutions in pure. In
addition, we introduced the L’OR decorative jar to
attract new consumers, drive re-use, and up-cycle
consumer behaviour.

In 2023, we introduced the L’OR Barista capsules
system in 2 new markets, bringing the total to 15
markets worldwide. We also introduced theexclusive L’OR Barista Model: L’OR Champagne.

•

In November, we issued bonds with an aggregate
principal of EUR 1 billion. The bonds haveinvestment-grade terms and were listed on the
Luxembourg Stock Exchange.

•

Senseo introduced updated recipes to its milk
range, realising a step up in quality and nutrition in
response to the growing demand for cappuccino.

•Within its mixes segment, Moccona launched a lowsugar option in Thailand, strengthening the presenceof Moccona Trio on-shelf and satisfying health andwellness demands.

•

During the year, we hit over 100 shipments per week
sent through more environmental friendly intermodal
truck/train) transport lanes.

•

As part of Peet’s long-standing commitment togiving back to coffee-growing communities, we
inaugurated interest-free small business loans forfemale coffee growers in Colombia and provided
financial support to Grounds for Health, anorganisation working to prevent cervical cancer incoffee communities.

••

Our ESG rating was upgraded to the top second
percentile within the Packaged Foods subindustry
by Morningstar Sustainalytics, a leading ESG ratings
provider. We improved our scores in 8 out of 11
assessment categories that Sustainalytics applies,
with the biggest improvements occurring in Carbon– Own Operations, Resource Use and Human
Capital.

•In November, USA Today, one of the leading daily
newspapers in the United States, voted Peet’s 'Best
Coffee Chain' across the United States.

•

In China, Peet’s grew its coffee bars from 125 stores
to more than 200. By year end, Peet’s partnershipwith Americana restaurants saw the opening of 18
Peet’s coffee bars across the Gulf Cooperation
Council Region (GCC).

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

8

Supplementary
information

INTRODUCTION TO THE ANNUAL REPORT
Dear Reader,As the largest pure-play coffee & tea company, JDE
Peet’s is proud to serve consumers with more than 350
millions of cups every day around the world. Althoughconfronted with unprecedented inflation over the last
two years, consumers continue to remind us of theimportance of these cups in their daily routine, either
in-home or away-from-home. We take great
responsibility to maintain the high-quality standards
that consumers expect from us, while responding totheir evolving needs.

Fabien Simon

Olivier Goudet

Looking back on 2023, we successfully navigatedanother dynamic environment and further progressed
our transformation to become a more global, a moredigital, and a more sustainable enterprise.
Although facing adverse currency effects, we increased
our sales and adjusted EBIT organically in 2023, and wefurther reduced our absolute net debt.
However, 2023 was not just about financial
performance. We reorganised our European segment tobecome omnichannel, we announced two acquisitionsin the US and in Brazil, and we transitioned towards a
portfolio of local brands in Russia. As we continued toinnovate and execute with discipline, we gained market
share globally in the most attractive coffee segments
and we expanded our competitive play in coffee
appliances with L’OR Barista. We also continued toinvest in our talent and our portfolio. In parallel, we
significantly reduced our greenhouse gas emissions,while leading a global effort to fight coffee-related
deforestation.
Throughout the year, our people and partners acrossthe globe worked tirelessly to pursue our company's
purpose to unleash the possibilities of our category andthe power of our brands. It was their ongoing efforts
and passion that enabled us to deliver a morecompetitive and accelerating performance.

FINANCIAL PERFORMANCEINNOVATION

In 2023, we delivered well against the commitments we
set at the start of the year, while operating in a macro
environment that is becoming increasingly complex andin a category that was still adjusting globally following
the pandemic.

The relevance and on-trend opportunity of the coffee
category continues to be evident. At JDE Peet’s, ourinnovation agenda is key to realising the long term
runway for growth. This agenda is focused on serving
more consumers by accelerating penetration indeveloping coffee markets, serving more cups by
expanding consumption occasions, and serving bettercups by premiumising across brands and categories.

During the year, we relentlessly stayed the course on
our value creation agenda, centred around profitable
and sustainable revenue growth. We continued tosimplify and premiumise our portfolio, we optimised ourfootprint and cost-base, and we focused on consumerled revenue management without compromising on thequality of our products and fundamentals. Supported byour unique set of iconic brands and a product portfolio
which is over-indexed to the fastest growing categories,
we gained market share globally in the premium coffee
categories of single-serve, instant and beans.
Against this backdrop, we delivered a mid-single-digit
increase in organic top-line growth and also increased
our adjusted gross profit and adjusted EBIT organically,
while continuing to invest in our strategic growth
opportunities, including the US, China, e-commerce,
our machine park and sustainability. Our financial
performance accelerated as the year progressed,
marked by an increase in organic top-line and adjusted
EBIT growth that brought our financial performance inthe second half back in line with our long-term
profitability algorithm, when excluding the performanceof Russia.

Identifying compelling growth trends and drivers is key
to develop initiatives that excite our consumers andcustomers around the world. These initiatives are
fuelled through the platforms of sustainability,
authenticity and variety. In addition, in 2023 our launch
programmes have been influenced and informed by the
inflationary environment in which we live.
Through the year, we have taken a leading position insustainable innovation. For example, launching a
breakthrough paper pack for soluble coffee, the first of
its kind in the market. A pack that is designed to createa more sustainable ecosystem in the soluble coffee
market by incentivising the reuse of existing glass jars
and tin formats. Moreover, the coffee from this newpaper pack will generate the lowest carbon footprint
within the existing range of JDE Peet’s products. In
addition, Senseo, which still holds the largest single
serve park in Europe and has the lowest environmental
footprint of any singe serve appliance, has brought tomarket the new Original Plus Eco brewer which is madeof 80% recycled plastics.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

We continued to unlock quality and craftsmanship for
more elevated, authentic coffee experiences. Our
evolving instant specialty ranges continue to bringexciting café experiences at home with new launches
such as Plant Based and Ice & Cold. We have invested
in our Jacobs brand and evolved the flagship, Krönung
ground, to 100% arabica. In tea, Pickwick has
introduced Finest Selections in key markets, a coarsely
cut high-quality loose-leaf tea range. Peet’s launchedflavours varieties and holidays blends.
Variety of choice remains a key growth driver for our
portioned espresso capsules business. We havewelcomed new brands to the portfolio such as Tim
Hortons and Maxwell House. We have continued to
expand our L’OR coffee portfolio with new premium
propositions such as Arabica Bourbon Limited
Creations and our Flavours range, consisting of
Chocolate, Caramel and Vanilla. We have enriched therange of our L’OR Barista brewer range with the launchof a new premium limited edition.
In a more challenging economic environment, ourconsumers around the world are making daily choices.
To make these decisions easier, we have been intentionalin rolling out value for money pack sizes across our mostbeloved brands: L’OR, Jacobs and Senseo.
In 2023, we have continued to fuel our future innovation
agenda through the successful development andsecuring of patents to drive ongoing technologicalsuperiority.

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

PEOPLESUSTAINABILITY

At JDE Peet's, we look for people who care about
coffee & tea as much as we do. We know that our
success depends upon engaged employees, withhigher engagement leading to greater productivity,commitment and loyalty. In 2023, we carried out acompany-wide engagement survey, with 85% of ouremployees taking part. We were delighted that 77% of
our employees scored a 4 or 5 (on a 5-point scale) inthe engagement survey questions, a two percentage
point increase on 2022, which, at that point, was ourhighest-ever score.

Sustainability is a long-term journey where every step
counts and in 2023 we continued to make strong
progress through our Common Grounds programme,
which embodies our ambition to positively impact
people, our planet, and the future of coffee & tea. This
included reducing greenhouse gas emissions along thevalue chain in line with our SBTi commitment, tomultiple initiatives aimed at reducing energy, water andpackaging waste.

We increased the percentage of women in leadership
positions and, separately, introduced a global DE&I
Policy, expanding on our existing Board Diversity
Policy, which underscores our ongoing commitment toour employees. The local activation of our global DE&I
strategy is driven by more than 270 DE&I champions
and employee resource group members globally, and in
2023 this number grew by more than 25 from a year
earlier.
To reinforce our commitment to contribute to the United
Nations Sustainable Development Goal on Gender
Equality, in 2023 we proudly joined the UN Women’s
Empowerment Principles. This will help us accelerate
the progress we have made in recent years to ensurethat employees from all genders feel equallyempowered to thrive at the company.

9

Supplementary
information

For example, we reduced our Scope 1 & 2 emissions by
21% and our Scope 3 emissions by 9% versus baseyear 2020. We also made strong progress on ourcommitment towards 100% responsibly sourced green
coffee by 2025, reaching 84% (2022: 77%), including
98% responsibly sourced into Europe. And by year-end,
we had a portfolio of 63 active projects, through which
we have reached more than 108,000 new smallholder
farmers, bringing the total number of smallholder
farmers we have reached since the inception ofCommon Grounds to 700,900.
We also substantially increased our sustainability
ambitions during the year, defining a comprehensive
strategic plan to set new and stronger SBTi
commitments to net-zero, and build an integrated
carbon accounting platform to track and accelerate thedelivery of our ESG objectives.

The efforts we are making in this area were again
recognised externally, with our ESG rating upgraded tothe top-second percentile globally within the Packaged
Foods subindustry by Morningstar Sustainalytics, aleading ESG ratings provider. We were also recognised
as a leader in sustainability through our inclusion in theprestigious Dow Jones Sustainability Europe Index,
which recognises the most sustainable companies in
Europe. We were one of only four European foodcompanies included in the index, and the only coffee &tea company.

OUTLOOK
While we expect the environment in which we operate
to remain complex and to continue to pose challenges,
we have entered 2024 with both momentum andoptimism as we believe the progress we have madeover the last three years positions us well to deliver on
our medium-term algorithm. By building on ourstrengths and acting decisively amidst uncertainty, we
aim to create lasting value for all of our stakeholders.
The future is bright, and we are confident in our
strategic direction.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

THANK YOU
Thanks to the unwavering support of our valued
stakeholders, 2023 was yet another solid year for ourcompany. We would like to begin by thanking ourdedicated people, who work with passion to deliver
exceptional products to customers near and far. To ourloyal consumers and coffee & tea aficionados, whether
brewing our products at home or enjoying them on thego, we thank you for choosing us time and again. Your
patronage motivates us daily. To the millions ofsmallholder farmers worldwide who supply our highquality coffee beans and tea leaves, and to our
suppliers who ensure timely delivery, we could not dowhat we do without you. Thank you for being an integral
part of our supply chain. To the NGOs and government
agencies who collaborate with us to support
smallholder farmers and promote environmental
stewardship, we value our shared mission. To ourindustry partners and trade organisations globally,
thank you for working alongside us to advance thecoffee & tea categories we are so passionate about.
And finally, to our shareholders – your ongoing interestand investment empowers our growth and ability tokeep delivering sustained value in this resilient andattractive market.

We are profoundly grateful to all who contributed to
JDE Peet’s in 2023, and look forward to continued
shared success.
Sincerely,

Olivier Goudet
Chairman of the Board

Fabien Simon
Chief Executive Officer

Governance andrisk management

Financialstatements

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information

10

BRAND HIGHLIGHT

STIMULATING PROSPERITY SINCE 1895

#1

in 22 out of 42
markets€2B+
retail sales value
worldwide

Coffee drinkers have delighted
in the JACOBS brand and its
wonderful aroma for more than
125 years. During that time, wehave been powered by the original
mission of our founder Johann
Jacobs: to deliver only the mostimpeccable coffee at reasonable
prices for all.
Today, JACOBS is the trusted coffeecompanion for millions of consumers
around the world, which has earned
us a leading position in 42 markets.
With innovative products in ground,whole beans, instant, mixes andpods, JACOBS truly offers a coffee
for every cup.

But understanding that leadershipentails responsibility, and in 2023 wetook significant steps towards
elevating JACOBS' role inchampioning the ESG agenda for JDE
Peet's and the coffee industry as awhole. Each and every one of our
products will now be supported by our
Responsible Sourcing programme,
where we work towards 100%
responsibly sourced green coffee by2025. In 2024, we will complete ourjourney to future-proof our mixes
portfolio, to adhere to our Health &Indulgence programme that aims tosignificantly reduce sugar, salt, fat andpackaging, and make progress
towards our full range becoming fully
recyclable, in line with our companywide commitments.
JACOBS. Find your wonderful.
Find your wunderbar.

Back to brands overview èJDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

WHO WE ARE
OVER 270 YEARS OF EXPERIENCE
For more than 270 years, we have been inspired by the
belief that it's amazing what can happen over a cup ofcoffee or tea. Egbert Douwes founded his first coffee
outlet in 1753 in Joure, the Netherlands. Over a century
later, in 1895, Johan Jacobs opened his first grocery
business in Bremen, Germany. And then in 1966, Peet's
Coffee® was founded in Berkeley, California by Alfred
Peet, with rich, complex, superior quality roasts unlike
anything ever tasted before. Today, we are the world's
leading pure-play coffee & tea company, providing
customers and consumers with coffee & tea in morethan 100 markets through a portfolio of over 50 brands,
including L’OR, Peet’s, Jacobs, Senseo, Tassimo,
Douwe Egberts, OldTown, Super, Pickwick andMoccona.

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

12

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

OUR PURPOSE
WE ARE
POWEREDBY OURPURPOSE

Unleash thepossibilities ofcoffee & tea tocreate a better
futurePerformance review
and outlook

Governance andrisk management

Financialstatements

13

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information

OUR VALUESOUR CULTURE
OUR BEHAVIOURS ARE VALUEBASED AND SHAPE OUR CULTURE

We stay focused on what matters and build ourmastery when we do the right things in the rightway

We choose the most straightforward paths toachieve our desired outcomes

We take responsibility for our actions andownership of our results

Together we make a bigger difference, building
trust and unity around shared interests

Ensures we win the freedom to create andpursue more opportunities by staying agile,
moving fast and resisting unnecessary
bureaucracy

Our company's values shape our culture and are theguiding principles that drive our business, impacting
the employee experience and our relationships withcustomers and other stakeholders. Setting us apart in
the industry, we proudly champion coffee democracy,
offering a coffee or tea for every cup.
Embracing an entrepreneurial mindset, we are rolemodels for our values and hold ourselves and othersaccountable to the highest standards, while actively
seeking an outside-in perspective. Our progressive
outlook and ambitious nature drive us to challenge thestatus quo, maintaining simplicity and a can-do
mentality.
Our culture is diverse, equitable, and inclusive,
ensuring that all champions can thrive, regardless of
their background or unique differences. In this highperformance culture, our champions are highly
engaged. We believe in growth in a compliant andsustainable manner, because growth is not only fortoday, it is also for future generations.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

14

Supplementary
information

OUR BRANDS
Wherever you are in the world, you can enjoy one of ourbrands. Our unique portfolio of brands is built upon arich history and is deeply rooted in the local heritage ofthe coffee & tea culture in which we operate.
èè

Our brand portfolio allows us to offercoffee & tea to everyone, no matter
who they are, where they are, or what
their preferences are, by covering
different price points, taste
preferences and drinking occasions.
Our brands bring people together,creating moments of connection andenjoyment, and providing energy andsensory experiences. They give people
the freedom to express theirindividuality and the power totransform themselves because weknow amazing things can happen overa cup of coffee or tea.
We use a distinctive brand-building
model to develop meaning andcommunications for our brands, sothat they meet the needs of ourconsumers.

è

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Click on è for further
information about this brand.

Our global brands are large players operating in
multiple markets, with one meaning and one
global execution.

è

Our regional heroes have an international
footprint with local nuances. These local nuances
are based on cultural drinking habits, the stage ofcategory development, and brand heritage.

Our local jewels are iconic in their local market.
These brands leverage local culture and heritage,
and are of true significance in their homecountry.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

15

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information

OUR SUSTAINABLE SUPPLY CHAIN
We source approximately 8% of the world's coffee andless than 1% of the world's tea, supplied to ourmanufacturing facilities for high-volume, flexible
production, new coffee & tea products, and technology
launches. We operate local manufacturing facilities
that respond rapidly to local consumer preferences andtastes.

As a global business, we rely on an extensive supply
chain. The majority of our direct material supplier base,other than coffee & tea, are concentrated in packaging
materials. Marketing and media make up the majorityof our total spend on indirect materials and services.
No significant changes were made to our supply chain
in 2023.

OUR SUSTAINABLE VALUE CHAIN

AGRICULTURE
We source coffee, tea andother agricultural products
from more than 30 countries.
Coffee & tea are grown incountries that face significant
socio-economic andenvironmental challenges.
Countries such as Indonesia,
Ethiopia and Uganda havethe greatest concentration ofsmallholder coffee farmers,
many of whom we reachthrough our Responsible
Sourcing pillar, underCommon Grounds.

Common Grounds(page 42)

SUPPLIERS
We work with more than 1,000
direct material suppliers
across more than 60
countries. They are critical tosustaining our business, andsome play an important role inhelping us achieve oursustainability goals.

PRODUCTION
We manufacture our coffee &tea products primarily at 42
manufacturing facilities in 24
countries, ensuringconsistently high productquality while carefully
managing the use ofresources.

Minimising Footprint(page 68)

PACKAGING
The packaging of our
products is critical to thegreat taste and freshness
we offer our consumers.
However, we recognisethat packaging becomes
waste and that its lifecycle
must be managed to limit
the environmental impact
and promote circularity.

DISTRIBUTION
We work with third-party
logistics partners to reliably
distribute our coffee & tea
products to customers acrossthe world in a manner that
ensures the products'
freshness and quality andminimises our environmental
footprint.

CONSUMERSCHANNELS
We sell our full product range
through a go-to-market
approach that covers theentire spectrum of sales
channels, retail channels,
online channels, Out-of-Homechannels and coffee stores.

END-OF-LIFE

Our mission is to delight
consumers with every cup
delivering high-quality
products, while creating value
for our customers.

Our multiple partnerships
allow consumers to moreeasily return their used coffee
pods for public or private
collection and into recycling
streams.

Our Brands (page 14)
Engaging our
Stakeholders(page 17)

Our Approach(page 34)

Sustainable Packaging(page 75)

Value chain boundaries:

UpstreamOwn operations

Downstream

BRAND HIGHLIGHT#1brand in market
share in the
Netherlands#1

in awarenessin the Netherlands

BRINGING PEOPLE CLOSER TOGETHER
SINCE 1753
In 1753, Egbert Douwes and hiswife Akke Thijsses opened theirgrocery store De Witte Os on the
Midstraat in Joure, theNetherlands, laying the foundation
for today’s Douwe Egberts.
Through the years, Douwe Egberts
has been the only coffee brand that
understands what drives Dutch
people, by being connected to Dutch
society and embedded in Dutch
communities. Nowadays, Douwe
Egberts is synonymous with a senseof community – whether it is the
comfort of a family gathering, a cosy
catch up with a friend, or a moment of

Back to brands
overview èconnection with a neighbour, Douwe
Egberts has been making it happen
over a cup of coffee for centuries.
Consistently delivering on these
moments has earned the brand its
association with the comforting
qualities of good coffee and goodpeople: warmth, character and theability to connect with others. There isno other moment that reflects thisbetter than Douwe Egberts Burendag– a day where neighbours across thecountry are encouraged to meet andconnect over a cup of coffee.
Launched in 2006, Burendag has
grown to become a Dutch tradition,
one that celebrates the quintessential
symbol of people coming together.
In 2023, we opened two new D.E.
Cafés in the Netherlands, bringing thetotal to 11 cafes. Douwe Egberts also
accelerated its sustainability agenda
by removing the plastic lid from theReady-to-Drink cup range, resulting
in around 44% less plastic per cup.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

17

Supplementary
information

ENGAGING OUR STAKEHOLDERS
We operate in a fast-paced, dynamic environment,
where stakeholder engagement is a key part ofachieving our many ambitions. Engagement enables
us to take stakeholders' needs into account as wework towards our strategic goals, and implement
the many policies, targets, and action plans thatenable us to steer the company towards sustainablegrowth.
We are proud of the many stakeholder groups that
contribute to making us the company we are, from thesmallholder farmers who cultivate the coffee & tea usedin our products, to our suppliers, customers,
consumers, employees, and shareholders. Our inclusive
approach to stakeholder engagement is marked by
active listening and meaningful interaction, guided by
the goal of using stakeholder insights to enrich our
corporate journey and achieve our strategic goals.
Our commitment to engaging with stakeholders extends
throughout the organisation and along the entire value
chain. This engagement takes various forms, from
regular and ongoing interactions to collaborative
projects that ignite innovation and foster meaningful
partnerships. This approach empowers us to leverage
the expertise of our stakeholders to enhance ouroperations, prioritise long-term value creation, andproactively address potential risks. Our Stakeholder
Engagement Policy, which we launched in 2023, sets
out the framework, approach and guiding principles toensure we stay connected.

As we make strong progress on our corporate journey,
the significance of stakeholder engagement continues
to grow. We recognise that the scale and focus of ourefforts will ultimately determine the impact we canachieve in shaping a brighter future. In pursuit of precompetitive initiatives, such as those involving
smallholder farmers and packaging end-of-life, we areintensifying our collaborative efforts across our supply
chain. This strategic alignment aims to identify anddeploy comprehensive scalable solutions, thereby
paving the way for a sustainable and prosperous future.

DOUBLE MATERIALITYTo ensure that we hear the voices of all our
stakeholders and determine associated impacts, risks
and opportunities, we performed our first double
materiality assessment in 2023, as part of our triennial
review. Carrying out a review once every three years
lets topics evolve, gives sufficient time to implement
actions based on outcomes, and enables the company
to align with periodic strategy updates, such as theValue Creation Plan.
As part of the three-year cycle, a light review will be
carried out in 2024 and 2025, where we will perform an
update based on desk research and interviews withinternal stakeholders. The materiality process is thenplanned in such a way that Business Planning andEnterprise Risk Management are informed of any
outcomes punctually.

As part of our double materiality assessment, and in linewith CSRD definitions, we capture both impact andfinancial perspectives.

DOUBLE MATERIALITY METHODOLOGYCONTEXT AND
STAKEHOLDER
IDENTIFICATIONIDENTIFYSUSTAINABILITY
TOPICSASSESS IMPACT
AND FINANCIAL
MATERIALITYVALIDATE MATERIALTOPICS

Value chain evaluation –assessing definitions anddifferent business models
within JDE Peet’s> 100 impacts, risks &opportunities identified
based on reporting
standards (GRI, ESRS,SASB), ESG ratings,
industry reports, consumer
analysis and peer review> 65 external
stakeholders and > 700
employees surveyed, tounderstand what mattersmost to different
stakeholder groups

2 expert panels – impact
and financial materiality
separately – to validate
the outcomes and scoring

Identified 9 key
stakeholder groups
across the value chain andclassified as affectedstakeholder or user of
information••

Value chain
visualisation
Stakeholder groups

PURPOSEThe outcomes of ourdouble materiality
assessment will be
used to:

23 topics defined bycategorising impacts, risks& opportunities andevaluating their position
across the value chain

20+ interviews
conducted with internal/
external stakeholders andexperts to gain insights on
impacts and risks &opportunities across thevalue chain••

Topic lists•

Stakeholder
perspective
Impact andfinancial score

Board session toapprove the process andoutcomes
Map material topics toapplicable European
Sustainability ReportingStandards (ESRS)•••Approval
Material topics
Mapping• Determine material sustainability impacts, risks & opportunities• Identify strategic sustainability priorities for the short, medium and long-term• Support the integration of sustainability practices in the organisation and operations• Inform risk management processes• Engage with stakeholders to improve strategy and to help identify and address operational issues• Enhance transparency in reporting• Report in compliance with the 2021 GRI Standards and, as of 2024, in compliance with the
Corporate Sustainability Reporting Directive (CSRD).

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

18

Supplementary
information

Double Materiality
CommonMaterial topic
Grounds pillar

Responsible
Sourcing

Minimising
Footprint

Connecting
PeopleUpholdingStandards

Value
chain

Main impact generated (potential/actual)

Time horizon

Main SDG* for positive
impacts

Relevant Annual Report section*

Biodiversity &deforestation

Working towards a deforestation-free supply chain in our sourcing of green coffee and paper & pulp. Anticipating andmanaging biodiversity and deforestation-related risks across the value chain by tackling region-specific issues atcommunity and landscape levels.

•

Farmerlivelihoods

Our commitment to making a difference in the lives of farmers, their households, and greater farming communities.
Through our Responsible Sourcing pillar under Common Grounds, we work closely with relevant stakeholders in the
sector to support farming communities’ vision of prosperity and to respect human rights.

••

Coffee: sustainable agriculture
Smallholder farmer engagement:
further outreach and expansion

Sustainableagriculture

Supporting farmers in implementing good agricultural practices that promote resilience while increasing the long-term
viability of farm production, including water and energy reduction, optimal nutrient management, climate change
mitigation efforts, soil conservation, integrated pest management, and activities to improve crop yields and quality.

••

Coffee: sustainable agriculture
Smallholder farmer engagement:
further outreach and expansion

Human rights

Applicable to our farmers, suppliers and other stakeholders in our value chain. We commit to high standards of socialand environmental responsibility and ethical conduct as a signatory of the UN Global Compact and in line withinternationally recognised human rights standards.

•

Respecting Human rights

Climate action

Reducing or preventing greenhouse gas emissions along our entire value chain and managing climate-relatedtransition and physical risks across the value chain by deploying decarbonisation technologies and investing in
effective climate change measures to adapt to climate change.

•

Taking planet action

Packaging &circularity

Enabling circularity and minimising the environmental impact of our packaging through design choices, helping reducematerial use, promote reuse/recycling/composting, and increase the use of recycled content.

•

Working towards sustainable
packaging and reduced waste

Water &
wastewater
management

Improving water management in our own operations, with a focus on availability, quality and access to water,
particularly in regions with high or extremely high water stress, leading to lower operating costs and reduced risks.

•Managing our water use

Human capitalmanagement

Investing in employee learning and development programmes and in people analytics to attract and retain talent, toraise the skills and capabilities to execute our strategy, and to embed company values at every layer of theorganisation.

•

Growing our people

Diversity,
equity andinclusion

Fostering a more diverse, equitable and inclusive organisation to ensure our employees feel they can be who they truly
are and in breaking down potential barriers for everyone to achieve their full potential.

•

Our global approach to DE&I

Product safety& quality

Delivering safe, high-quality products by ensuring our own manufacturing and processing facilities are regularly
audited and hold international certifications across all areas of food safety and quality.

—•

Food safety and quality

Ethics andgovernance

Ensuring general principles of governance and ethics (including accountability, transparency, integrity and compliance)that guide our behaviour at all levels of our organisation. This topic includes fair tax, anti-competitive behaviour, anticorruption and bribery.

•

Corporate Governance—

Cyber security

Protecting JDE Peet’s IT systems from intrusion, both outside or inside the company, and ensuring recovery of themain IT system after an event occurs.

—•

Risk management•

Preservation of nature and biodiversity:
the importance of rich habitat
Deforestation-free supply chains*Associated impacts, risks and opportunities, and our strategy, are described in greater detail in their respective section of the Annual Report and Risk management section of this report.

Impact materiality

Financial materiality

Short-term: 1 year

Medium-term: 1-5 years

Long-term: >5 years

UpstreamOwn operations

Downstream

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

METHODOLOGYIMPACT MATERIALITY
Impact materiality has been assessed based on severity(scale, scope, and remediability) and likelihood.
Stakeholder surveys were conducted to understandwhat matters most to them. Subsequently, we usedinterviews to gather qualitative and quantitative insights
into the severity of impact and understand the likelihoodof occurrence. Specific stakeholders focused on impact
materiality and financial materiality based on their areaof expertise (for example, multiple Executive Committee
members, including the CEO, and external
stakeholders, including representatives from Sedex andIDH for impact materiality). Interviews werecomplemented by desk research. Finally, an impact
expert session was organised to calibrate theoutcomes.
In our assessment, we used the scale/parameters forseverity and likelihood as shown in the table below. For
severity, the scale, scope, and remediability of impacts
are embedded. The likelihood criteria aligns with JDE
Peet’s' enterprise risk management process.

FINANCIAL MATERIALITY
We assess financial materiality based on the size of
potential financial effects and likelihood. Financial
effects can be attributed to impact on competitive
advantage, improved customer/consumer value, license
to operate, and/or reputation.

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

As with impact materiality, we used different methods(desk research, interviews and expert sessions) todetermine connections between the impacts &dependencies of the topics and the risks &opportunities that may arise from them. Relevant
stakeholder groups and/or experts were involved in
capturing this perspective.

Severity

Impact has been determined as a percentage ofrevenue or EBIT at stake. The likelihood criteria isreflected similarly to the impact materiality.
For both impact and financial materiality, we havedefined the time horizons as short, medium and longterm, in line with the definition outlined in the CSRD,
which defines these horizons as follows:•••

Short-term: 1 year
Medium-term: >1-5 years
Long-term: >5 years.

Financialstatements

19

Supplementary
information

Likelihood
Chance ofoccurrence

Parameter

Description

Parameter

Description

Significant

Impact is significant, global, and/or nonremediable

Highly likely

>90%

High

Impact is high, widespread, and/or very
difficult to remedy

Impacts in the highly likely
category are almost certain
to occurLikelyImpact is medium, medium scope, and/or
difficult to remedy

Low

Impact is low, concentrated, and/or
remediable with effort

These impacts need regularattention, as they are boundto reoccur and therefore
require a consistent
mitigation strategy>60%-90%

MediumMinor

Impact is minor, limited scope, and/or
relatively easy to remedy

Possible

Possible impacts may occur
about half the time andtherefore need attention>40%-60%

Unlikely

Impacts in the unlikely
category have a relatively
low chance of occurring.
However, because they may
still affect JDE Peet’s'
business, they need to bemonitored and mitigated>10%-40%

HighlyunlikelyHighly unlikely impacts
should be recognised, but
require little attention<10%

Impact (potential financial effects)
Parameter

Description

Revenue/EBIT

MaximumSignificant (potential)
financial impact

> 5%

High

High (potential)
financial impact>2.5-5%

MediumMedium (potential)
financial impact>1-2.5%Low

Low (potential)
financial impact>0.5-1%

Negligible

Negligible (potential)
financial impact< 0.5%JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

STAKEHOLDERSOWNERSHIP AND GOVERNANCE

TOPIC BOUNDARIES

In identifying affected stakeholders and users of
information, we expanded the existing mapping fromthe 2022 annual report. This includes a description on
the importance to JDE Peet’s' benchmark against
peers, analysis of the value chain and its stakeholder
list. The relevance of each stakeholder group can beshown through the five attributes of stakeholder
identification: Dependency, Responsibility, Tension,
Influence and Diverse perspectives.

The Board is ultimately responsible for the oversight ofsustainability impacts, risks and opportunities. The
CSRD Steering Committee, composed of the Global
Director Group Control, VP Sustainability and GroupInternal Audit Director, reviews and approves thesustainability information. The company’s governancestructure is reflected in the Board structure section ofthis report, which includes the most important
governance policies and regulations at each level,
including oversight and management of sustainability
impacts, risks and opportunities.

Several information sources were used to identify
impacts, risks & opportunities, and to define topics,
allocate sub-topics and determine topic boundaries.
Several credible internal and external sources covering
the value chain and short-, medium-, and long-termtime horizons have been included to ensure all time
horizons are covered. The list was built up using
sources including, but not limited to, ESRS, GRI, TCFD
and internal policies, Board meeting agendas, andsustainability programme reviews. Based on this, wecreated a list of 143 sustainability topics, including therationales for including or excluding a certain topic. We
subsequently clustered overlapping topics and defined
a list of 23 topics — including sub-topics andboundaries — that were used in the further double
materiality assessment, which prescribes how the
shortlist was derived.

This is complemented by taking into account JDE
Peet’s' entire value chain, from bean to cup, and oursegments. Based on these inputs, we defined our
stakeholder groups, including whether they are affectedstakeholders or users or both, their significance to JDE
Peet’s, and within that group, additional details of who
is actually included in the group.
The stakeholder groups we identified are:• Consumers• Customers and business partners• Smallholder farmers• Suppliers• Employees• Nature and communities (NGOs)• Industry (and trade associations)• Regulators• Shareholders, investors, financial institutions and tax
authorities.

Engagement with stakeholders is central in our ongoing due diligence process and sustainability
materiality assessment.

SCOPE
JDE Peet's' materiality assessment extends beyond
financial reporting. It identifies and assesses
sustainability impacts, risks & opportunities across theentire value chain, from agricultural production to endof-life. We also considered the geographical footprint,
such as sales per segment, production locations, andfarmers' locations.

20

Supplementary
information

closely linked to the UN Sustainable Development
Goals as reflected in the double materiality table.
Since the materiality assessment carried out in 2022,
human capital management and water & wastewater
management have become more material and havebeen included as most material topics. Both topics havesince received additional focus in our quarterly
sustainability programme review and have led to
strategy adjustments to reflect stakeholder
requirements.
We have also seen that some topics - product safety &quality, ethics & governance, and cyber security — havebecome more of a 'hygiene factor' when carrying out
responsible business, and are now seen as being thestandard.

Our material topics
For impact materiality, all topics that scored above'medium' and 'possible' on severity and likelihood weredeemed material. These were brought to the impact
expert session. A similar setup was used for financial
materiality, and all topics above 'medium' and 'possible'on impact and likelihood were considered material andbrought into the financial expert session. During thoseexpert meetings, a final list of topics was determined.
Following dozens of interviews, over 750 survey
responses, two expert sessions, and Executive
Committee and Board approval, we defined the 12 mostmaterial sustainability topics for JDE Peet's. These are

•
•
•
•
•
•
•
•
•

Climate action
Packaging & circularity
Biodiversity & deforestation
Farmer livelihoods
Human rights
Sustainable agriculture
Water & wastewater management
Human capital management
Diversity, equity and inclusion

Upholding standards•••

Product safety & quality
Ethics and governance
Cyber security

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

21

STAKEHOLDERSCONSUMERSCUSTOMERS AND BUSINESS PARTNERS

SMALLHOLDER FARMERS

What matters to them

What matters to them

What matters to them

While consumers are increasingly focussing on
the sustainability of their cup of coffee, theirprimary focus remains on affordability andquality. With the growing transparency of supply
chains and scrutiny on greenwashing, it isimportant to remain authentic, deliveringoutcomes that are sustainable along the entire
supply chain, whilst keeping coffee accessible
for everyone.

Customers are the main gateway to ourconsumers, and aim to provide the bestassortment possible. While in 2023, we dealt
with trade interruptions due to pricing disputes,
we remain focused on providing customers withthe best product at a competitive price. We are
increasingly engaging with customers on GHG
emissions, as we are key to helping them deliveron their net-zero objectives. Reduced andrecyclable packaging continue to remain top ofmind, as consumers become ever more aware of
back-of-pack labelling.

Smallholder farmers serve as the cornerstone of
our coffee & tea production. These dedicatedindividuals, comprising millions of small-scale
farmers around the world, contribute to over
80% of the world's coffee output. Ensuring theirprosperity and safeguarding the future of coffee
production are critical objectives for JDE Peet's.
Climate change presents a looming threat, and ispoised to reshape the landscape of coffeegrowing regions. By 2050, if the world fails todeliver a net-zero future, as much as half of the
global area suitable for coffee cultivation may belost. Today, farmers already grapple with theearly signs of climate change, including shifting
weather patterns that bring longer dry spells,
water scarcity, and extreme temperaturefluctuations. These challenges pose a profoundrisk to crop yields, placing the livelihoods andincomes of farmers in jeopardy, and ultimately,
affecting entire communities if decisive action is
not taken.

How we engage
Our key consumer contact points are through ourbrands. Our omni-channel approach helps us to bewhere the consumer is, and considering the impact androle of each channel along the consumer decision
journey enables us to create meaningful interactions.
Each year, we facilitate approximately 200,000
interactions via our consumer carelines, encompassing
a wide range of on- and offline communication. We also
actively connect with consumers through our brands'
marketing initiatives, fostering awareness on
sustainability. Additionally, we harness valuable insights
taken from standard industry research sources andconsumer data to enhance our understanding ofevolving consumer trends. This concerted effort
empowers us to tap into the full potential of ourconsumer base.

How we engage
Our sales teams have an ongoing dialogue withcustomers to ensure expectations are met. Clearlystructured annual Customer Planning Days are used toalign plans for the year ahead, while increasingly weengage actively at a corporate level to discusssustainability topics and how we can work together todeliver on our respective commitments. We also engage
on sustainability through top-to-top meetings with ourcustomers' sustainability leads.

How we engage
Our Responsible Sourcing pillar is committed toempowering smallholder farmers through training andequipping them with tools and techniques tailored toaddress their specific local challenges. In partnershipwith various organisations, we establish comprehensive
programmes that grant farmers access to essential
services and resources. These include climate-resistantseedlings, the adoption of agroforestry practices, safeand responsible use of agrochemicals, and theimplementation of measures to protect human rights.
Our farmer training initiatives are developed
collaboratively with our partners, aligning with andaddressing local priorities in a structured, actionoriented manner, aimed at fostering continuous
improvement within the supply chain.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

22

Supplementary
information

SUPPLIERSEMPLOYEESNATURE & COMMUNITIES (NGOs)

INDUSTRY

What matters to them

What matters to them

What matters to them

What matters to themWith inflation and energy prices remaining high in
2023, our suppliers had to focus on the bottom
line while ensuring they could deliver high-quality
goods on time. Ensuring future business in avolatile economy is key to them.

Employees are at their best when they can bethemselves, are respected and feel included.
Creating a culture of high-performing employees
requires an ongoing focus on human capitalmanagement, ensuring people can grow throughtraining and feedback. Facilitating employee
growth through internal opportunities is essential
to drive employee engagement.

While nature can't speak for itself, growing
concern over biodiversity loss and degradationof the environment means that nongovernmental organisations (NGOs) are
increasingly speaking on nature's behalf. They
are advocating decisive action to combat climatechange, the restoration of nature, and thecontinued focus on helping smallholder farmers.
NGOs partner with us in our Responsible
Sourcing pillar, where we work together toimplement many of our projects aimed at helping
smallholder farmers around the world.

We are an active member of the European
Coffee Federation (ECF), the representative
organisation for the European coffee trade andindustry, covering approximately 35% of theworld's coffee traded volume. The industry is
focused on a number of issues, from sustainableagriculture and climate change mitigation, tobiodiversity and deforestation protection. In
2023, the industry was most focused on the
topic of deforestation, following the introductionof regulations to combat this key issue. It is vitalthat the coffee industry complies with these new
regulations, as market access is restricted for
non-compliant coffee producers.

How we engage
We regularly engage with our suppliers through directconversations, comprehensive supplier engagement
sessions, and in collaborative industry forums. In 2023,
we updated our Supplier Code of Conduct, which all
suppliers are required to conform to. In addition to
strategic partnerships with key suppliers, our
Responsible Sourcing pillar engages through SEDEX
and the Self-Assessment Form process, to identify andaddress social and environmental supply chain issues.
As our suppliers are our Scope 3 emissions, we actively
engage through our Supplier Relationship Management
process to ensure our net-zero roadmaps align. We areproud to say that suppliers constituting 44% of our raw(non coffee)/packaging footprint are SBTi committed orgetting their targets validated by the Science Based
Target initiative.

How we engage
We engage with our people on a day-to-day basis,working together to create a better future, throughonline channels such as Workplace, via Teams, as well
as at the office and during company events. The cup ofcoffee in the coffee corner will always be the hub of theorganisation. Our mid-year and year-end reviews ensure
we remain on track, get our learning goals in place, andmanage the work. We use the engagement survey andsubsequent follow-ups to identify attention points andways to further improve and keep our employees
engaged.

How we engage
The voices of NGOs form an important part of ourmateriality assessment process. In addition, we
regularly engage with various NGOs on specificenvironmental or social topics and participate in theirbenchmarks and surveys. We also engage with those
NGOs which implement some of our Common Grounds
projects through project discussion and steeringcommittee meetings, and collaborate on a range of
relevant projects.

How we engage
In addition to the ECF, we are active in national tradeassociations in a number of countries, as well as the
Global Coffee Platform (GCP), with the aim of tacklingcomplex challenges across the entire value chain. We
also collaborate with industry partners in a precompetitive way to address challenges such as
standardising carbon footprint measurements.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

REGULATORS

Introduction

Strategy andvalue creation

Performance review
and outlook

What matters to them

Regulators are increasingly focused on driving
change in areas where the sector fails to act. For
example, the EU is taking a leading role inestablishing sustainability regulation, such as on
deforestation (EUDR), packaging (PPWR) andreporting (CSRD), with more likely to come. Morelocally, we see governments acting to protect
their water supplies due to droughts.

In addition to regular interest in our strategy andperformance, in 2023 we interacted with(potential) shareholders, debt investors, equity
research analysts, debt rating agencies and ESG
rating agencies on a wide variety of topics. Key
topics included our long-term growth
opportunities in areas such as the US, China,
other emerging markets and digital commerce,
our sustainability journey, our disciplined pricing
strategy in light of ongoing inflation, the shift to a
fully integrated omni-channel approach inEurope, the post-pandemic transition with
consumers spending more time Away-fromHome, the planned acquisition of Maratá in
Brazil, and Russia.

We typically engage with governments indirectly
through industry and trade associations, such as the
ECF. We take a more active role on some topics, withthe goal of ensuring regulation achieves its aim and is inline with the Paris Agreements.
We engage with governments in the largest coffee
producing areas to support their transition to
deforestation-free coffee. And with the objective offurthering sustainable packaging, we invited several
regulators to visit sorting centres to view the existing
recycling infrastructure for single-serve pods.

Financialstatements

Supplementary
information

SHAREHOLDERS, INVESTORS, FINANCIAL
INSTITUTIONS AND TAX AUTHORITIESWhat matters to them

How we engage

Governance andrisk management

How we engage
We engage directly with our shareholders through theAnnual General Meeting of Shareholders. Further
engagement with (potential) shareholders and otherfinancial market participants includes semi-annual
earnings calls, investor roadshows, (ESG) investor
conferences, as well as individual investor and analyst
calls and meetings. These events are hosted by one ormore members of the Executive Committee, theInvestor Relations team and/or the Sustainability team.
Additionally, we are open and transparent and develop
cooperative relationships with tax authorities.

In the Netherlands, we hold quarterly meetings with the
tax authorities, and separate meetings and/or calls may
be organised to proactively discuss ongoing events
relevant for tax purposes, if and when required. GroupTax participates in those meetings and/or calls, and ourChief Financial Officer also occasionally engages with
the Dutch tax authorities.

23

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

24

Supplementary
information

EXTERNAL TRENDS AND DEVELOPMENTS

EXTERNAL TRENDS

PURCHASING POWERSUSTAINABILITY AWARENESSCONSUMERS ABANDON THE MIDDLE GROUND

In recent years, the coffee & tea categories have been ina state of change, largely due to a shift in consumer
tastes and behaviour. While inflation remains, and has
added to financial pressure for consumers, we areseeing a further normalisation of the balance between
In-Home and Away-from-Home consumption in theaftermath of the pandemic. It is clear that coffee & tea
remain crucial beverage moments, and within this fastchanging environment we have identified several key
trends to which we are responding with a combinationof innovation, expertise and the power of our brandportfolio.

Consumers are budgeting with care and making
decisions on how to reduce costs, big and small – withthe price of a cup of coffee a common reference point.
Consumers are increasingly paying attention to how
brands will help them cope with economic pressures.
While coffee & tea are an important part of the daily
routine, they are also seen as an affordable treat. Whilst
some consumers look for ways to make coffee morecost-efficient, and others look for indulgent
experiences. No matter where consumers choose theircoffee, we believe it will remain both an essential item
and an indulgent treat through changing times.

Consumers are increasingly aware of the impact theirchoices have on the environment and the wellbeing ofothers, leading them to select options that are moresustainable. This can include responsibly sourced
coffees & teas, environmentally friendly packaging, andproducts with a reduced carbon footprint. At the sametime, governments are progressively looking at policy
initiatives to address these topics, particularly on
greenhouse gas emissions, human rights, anddeforestation.

Consumer fragmentation is increasing across the coffee& tea categories, with trends such as growing numbersof consumers seeking premium products anddemonstrating their preparedness to trade up within acategory or to trade up by experiencing a new category.
At the same time, it is clear that more people are
seeking value product propositions. The growth in thesetwo parallel segments is coinciding with a decline in the
mid-range market. The result is a divergence in pricing
opportunities as both premium product propositionsand value products become more prominent. We
observe polarisation of consumption in both categories,
thus elevating the importance of overall brandexperience, which in turn means that meaningful
innovation will be critical for future success.

The heritage of brands provides trust, connection
and familiarity, particularly in times of stress anduncertainty.

With our brand portfolio covering all segments
we have a coffee or tea for everyone.

Through our Common Grounds sustainability
programme, we directly respond to the growing
focus on sustainability.

We have evolved our growth strategy to
expand our single-serve, premium instants andwhole-bean coffee subcategories to respond tochanging consumer tastes.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

25

Supplementary
information

GLOBAL CONSUMER CONCERNSCAFÉ CULTURE IS HERE TO STAY

EMERGING MARKETS, EMERGING GROWTH

E-COMMERCE AND COFFEE GO HAND-IN-HAND

Geopolitical events are creating increasing unease for
many, which among consumers often translates into
concern and anxiety about the future. Taking breaks is a
growing need, and coffee & tea naturally help tomanage energy throughout the day. We have a
responsibility to help reduce stress, and our brands are
ideally positioned to support consumers craving
familiarity, connection and trust during difficult periods.
Across the globe, our local brands have long been asign and symbol of home and now, more than ever,home is a sign and symbol of safety, connectedness,
and a safe harbour for consumers.

The café culture has undergone a global expansion inrecent years, which has not only increased theconsumption of coffee & tea, but also created new
consumer touch points. We are utilising these touchpoints to introduce consumers to new and different
tastes, textures and concepts, expanding brandawareness and building stronger consumer
relationships. This can lead to consumers purchasing
additional products through different channels, such as
their favourite coffee chain-branded beans online, with
consumers clearly demonstrating that they are preparedto pay more for what they perceive as an elevatedexperience.

As global prosperity continues to improve, consumers
in emerging markets are developing a taste for thecoffee experience. We see that our emerging markets
are growing at roughly twice the pace of our developed
markets, evidenced by our continued growth in China.
The total spend on coffee is accelerating and we expect
this to continue, driven by increased coffee
consumption overall and an increased share of the
Away-from-Home business. This shift will likely attract
large coffee chains to urban areas in these markets.

Selling coffee online was on the rise even before thepandemic, but an increased demand for products online
also leads to growth in online coffee sales. E-commerce
allows consumers the ease of buying their daily cup andthe ability to find speciality and premium coffee
products that they might not otherwise have access to,and post-pandemic people continue to enjoy coffee athome.

Our Brands provide trust and offer a moment ofcalm, mindfulness, and connection at a time
where negative feelings continue to feed stressand anxiety.

As part of our growth strategy, we aresuccessfully increasing the household
penetration of Peet's in the United States.

We are increasing exposure to, and driving
growth in, emerging markets as part of our
growth strategy, directly capitalising on thisemerging trend.

Through e-commerce we are increasing thenumber of cups we serve, bringing our coffee toeveryone at home.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

CONSUMER CENTRICITY POWERED BY DATAHEALTH AND NUTRITION

Access to consumer data delivers a competitive
advantage in consumer product categories. Combinedwith AI-driven models, other data analytics techniques,
and social monitoring, we are able to identify consumer
trends and shifts in consumer behaviour. Trends enable
us to better predict what will be important in the future.
Consumer centricity powered by data will help us drive
improved Brand presence across touchpoints(communication, packaging, product innovation, better
shopping experience, and drive category growth acrossdifferent channels).

There is a shift towards healthier lifestyles, which
impacts the products consumers source. Consumers
are looking for products to better help them achieve abalanced diet. We see continued pressure on productswith higher fat and sugar levels, among both consumers
and legislators, and there is a move among someconsumers for caffeine-free options. While drinking
coffee & tea in moderation is part of a healthy lifestyle,and consumers appreciate that coffee & tea can provide
nutritional and health benefits, we seek to protect ourhealthy nutritional heritage as consumer trends adapt,developing new beverage segments with higher
nutritional values and offering decaf variations.

By focussing on consumer centricity andinnovating our brands, we can provide
consumers with the right products, at the rightmoment.

Through our Health & Indulgence programme, we
continue our heritage of proposing healthieralternatives without compromising consumer
preferences.

Governance andrisk management

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26

BRAND HIGHLIGHT

L’OR LIVES TO UNLEASH PLEASURE€1B
coffee brand#1

retail coffee brandin Francesold in50+
markets

Created in France in 1992,
the ambition for L’OR has always
been to offer the best coffee in theworld. In 2016, L’OR transformed
the market with its high-quality
aluminium capsules and exquisite
coffee blends.
Today, L’OR has turned into abillion-euro coffee brand and has
become the number one retail coffee
brand in France. With a desirable
coffee portfolio across all coffee
categories, available at arm’s reachin over 50 markets, L’OR will continue
to seduce coffee lovers around theworld, delivering layers of flavour andaroma for an immersive sensorial
experience.
Since 2023, L’OR Barista is alsoavailable in the US in the single serve
coffee category, bringing L’OR quality
coffee in an espresso machine,
specifically designed with U.S.
consumers in mind.

Back to brands overview è

In 2023, we proudly introduced our
new global brand campaign ‘awaken
your senses’. In a world that neverstops, this campaign is an invitation to
slowdown and experience theintensity of an intimate moment ofpure coffee pleasure. The campaign
was directed by famous French
photographer and cinematographer
Bruno Aveillan.
L’OR continued to innovate, launching
new, limited creations: Arabica
Bourbon, a decorative instant pure jar
inspired by the treasures of nature andthe introduction of the exclusive
L’OR Barista appliance model:’L’OR Champagne’.
Looking ahead, L’OR is committed
to protecting and promoting a richer
future of coffee diversity.
In partnership with World Coffee
Research, L’OR will work to enrichcoffee origin diversity, to ensure that
future generations can enjoy coffee
pleasure forever.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

STRATEGY AND
VALUE CREATION
Our value creation story29

Our strategy

30

Our approach

34

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

28

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Strategy andvalue creation

Introduction

Performance review
and outlook

Governance andrisk management

Financialstatements

29

Supplementary
information

OUR VALUE CREATION STORYOUR PURPOSE: WE UNLEASH THE POSSIBILITIES OF COFFEE & TEA TO CREATE A BETTER FUTURE
Inputs

WHAT WE DEPEND ON
Financial and manufacturing••••

WHAT MAKESUS SPECIAL

Values

83.8% responsibly sourced coffee
289 kT of packaging material (44% of renewable sources)
2,356,882 MwH energy use
6.6 million cubic metre water use

Combinecategory focus
and scale

InputsOutcomes•••

EUR 8.2 billion total sales
EUR 1,128 million adjusted EBIT
EUR 522 million free cash flow

Financial and manufacturing•••128.1 billion cups of coffee
85 kT of waste generated
79% packaging components
designed to be reusable,
recyclable, or compostable
1.4% decrease in water intensity
compared to 2020

WHAT WE DELIVER

EUR 23.1 billion in total assets
EUR 301 million capex in 2023
42 facilities across 24 countries
Investments in growth

Resources••••

Activities

Produce widest range ofcoffee & tea products at
highest quality•

THE VALUE WE CREATE••••

Resources
•
•

•
•
•

> 1,000 direct material suppliers across 60 countries
12.5 million smallholder farmers in > 70 countries
Ongoing stakeholder engagement along the value chain

Talent••21,196 employees of 101 different nationalities
42.6% of our employees are women•

23 average training hours per employee

Intangibles••

Owner of the largest portfolio of coffee & tea brands
Our R&D capabilities and intellectual property

SERVE
MORE CUPSMASTEREXECUTION

Attract
consumers
relentlessly

Fuel thegrowth from
quality anddiscipline

Accelerate inclusive andsustainable industry
transformation

GROW
TOGETHER

21% reduction in Scope 1 & 2 (baseline 2020)
9% reduction in Scope 3 (baseline 2020)

Social and relationship•Social and relationship

EUR 11.9 billion in market cap
Investment grade credit ratings
EUR 340 million dividends
1.1% of waste to landfill•

110,900 smallholder farmers reached in 2023
and 700,900 since 2015
39 markets with #1 or 2 market position

TalentChampion an
inclusive
ecosystem

Provide differentiatedoffering through uniqueportfolio of brands,
across different pricepoints and throughomnichannel approach•••< 1% pay equity-gap
High engagement levels
Fostering a more diverse, equitable and inclusive
organisation

Intangibles••

Providing energy and sensory experiences
Creating moments of connection and enjoyment

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

30

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information

OUR STRATEGY
We operate in coffee & tea categories across almost
every market in the world, all of which have their own
traditions, trends and tastes, making these categories
fascinating, complex and fast-moving.
We believe it is vital that we respect this endlessdiversity by both responding to trends and working toproactively shape consumer tastes and habits, where
possible.
To achieve this, we have put in place a strategic
framework designed to generate sustainable, inclusive,and profitable growth in the global coffee & tea
categories in developed and emerging markets. We
believe that such growth will help us create long-termvalue for customers and consumers, the company andall our stakeholders.
Our strategic framework is built on three pillars:• Serve more cups through a relentless focus on
attracting consumers• Master execution which fuels our growth from
quality and discipline in everything we do• Grow together by championing an inclusive
ecosystem

Our strategic framework is
built on three pillars:Serve more
cups

Masterexecution

Grow
togetherthrough a relentless focus on
attracting consumers

which fuels our growth from
quality and discipline ineverything we doby championing an
inclusive ecosystem

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

We are focused on attracting new consumers by increasing
penetration in fast-growing markets and subcategories, by
premiumising across categories and geographies, and by increasing
our global footprint organically or through partnerships andacquisitions.
To achieve this, our growth strategy targets five areas of opportunity:

The single-serve, whole beans and premium instantsubcategories are the fastest-growing segments of thecoffee category, but we have yet to exploit their fullpotential globally. A significant part of our annual
investments target these fast-growing segments. Suchinvestments demonstrate our intent to pursue growth
opportunities through various offerings and productinnovations in both existing and new markets, atdifferent price points and across multiple brands. We
will achieve this by building on the strength of ourcurrent brand portfolio which enables us to be active inmany different markets and to serve the entire spectrumof consumers.

Financialstatements

Supplementary
information

3. BUILDING DIRECT CONSUMER RELATIONSTHROUGH OUR OWN DIRECT-TO-CONSUMERCHANNELSSERVE MORE CUPS

1. INCREASING THE HOUSEHOLD PENETRATION
OF THE FASTEST-GROWING COFFEESUBCATEGORIES

Governance andrisk management

2. INCREASING EXPOSURE TO, AND DRIVINGGROWTH IN, EMERGING MARKETS
Emerging markets have seen significant growth inrecent years and we expect this trend to continue. We
believe that changing consumer trends and preferencesin these markets, including an increase in the
consumption of coffee & tea and the premiumisation of
the coffee & tea categories, present significant growth
opportunities. Our growth strategy includes the
expansion of sales in existing and new markets,
illustrated through our partnerships with Hillhouse andAmericana in China and the Middle East. JDE Peet’s
has been active in Brazil, Eastern Europe and South
Africa for many years, while in recent years we have
expanded our footprint in the Asia-Pacific region
through the acquisitions of Super Group in Singapore
and OldTown in Malaysia.

The pandemic has fuelled consumers' online
purchasing behaviour, a trend we expect will continue
to grow in the coming years. In many regions, we haveseen a substantial rise in the number of people working
from home, and a subsequent increase in In-Home
coffee & tea consumption. Consequently, we areserving more consumers through our proprietary Directto-Consumer channels such as peets.com,
tassimo.com and lorespresso.com. The growth in direct
relationships with our consumers has and will continue
to enable innovative new connections and the creationof more personalised offerings.

4. CAPTURING ATTRACTIVE OPPORTUNITIES IN
THE OUT-OF-HOME SALES CHANNEL
We have a solid position across the Out-of-Home sales
channel and are well positioned to capture newopportunities as the coffee category continues to evolvein the wake of the pandemic. We intend to seize theseopportunities by offering full coffee & tea solutions to
our customers. This applies particularly to noncommercial customers where coffee solutions areprovided as a service. At the same time, we willleverage our portfolio of brands (including Peet's, L'OR
and Jacobs), our direct go-to-market approach, and ourability to enhance customer experiences andoperational efficiencies through our IT platforms.

31

5. CAPTURING OUR STAKEHOLDERS REQUESTFOR A 'BETTER' CUP
To remain relevant and competitive while continuing togrow, our product and service portfolio will have to
evolve to integrate the sustainability challenges that lie
ahead of us. Governments are redefining theboundaries of our right to operate, and we are working
to further integrate environmental and social
considerations that will positively impact our
procurement, manufacturing and distribution practices.
Our customers and suppliers are facing similar
challenges, and supply chain collaboration is becoming
increasingly important if we are to deliver on oursustainability ambitions. Our consumers are scrutinising
our engagement towards a better future, and our efforts
help create greater trust in our brands. Our investors
request resilience and have long understood that
financial and non-financial performance are closely
linked. And coffee & tea farmers, who are at the heart ofour business, deserve a greater future to ensure thatevery day we continue to enjoy a great cup of coffee &tea that drives economic, social and environmental
value. More information on how we are working tocreate value for society and our many stakeholders canbe found in the Performance review section of thisreport.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

MASTER EXECUTION
Master execution is the second pillar of ourstrategy and it will fuel our growth through quality,
efficiency and discipline in-store and along our
supply chain. Our aspiration is to provide
sustainable and agile supply.
Our supply chain organisation is working toanticipate emerging challenges as global supply
chains change faster than ever before. We
optimise our manufacturing operations' network
to adapt to consumer preferences, which results
in ongoing investments in our manufacturing
facilities and a wider network to support our
growth.
Current priorities for this strategic pillar include:

Introduction

Strategy andvalue creation

Performance review
and outlook

1. NOT COMPROMISING ON PRODUCT QUALITY
Our consumers appreciate our strong brands, relying on
the consistent high quality that we deliver. At JDE
Peet’s, we make a promise not to compromise on
product quality. We also don’t compromise on our
performance and continue to operate with financial
discipline to protect profitability and cash flows.

Governance andrisk management

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32

Supplementary
information

2. DELIVERING SERVICE EXCELLENCE ACROSSCHANNELS
Due to changing consumer trends, and shifts between
different channels, JDE Peet’s is constantly focused ondelivering excellent service in all markets and channels.
To achieve this, we work to further strengthen andoptimise our operational network. In addition, oursupply chain and operations teams focus on ensuringbusiness continuity.

3. MINIMISING THE ENVIRONMENTAL
FOOTPRINT OF OUR OPERATIONS AND
SUPPLY CHAINS
Mastering execution in a responsible way, while
minimising our environmental footprint, is a priority. We
aim to source, operate and manage our supply chain ina sustainable way. To help achieve this, we haveembedded sustainability metrics in several of ourbusiness decision processes, including those related toinvestments and innovation, empowering our people totake informed decisions. We continue to invest to
deliver information where needed, while aligning on
stakeholder needs.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

GROW TOGETHER
Grow together is the third pillar of our strategy, which
focuses on championing an inclusive ecosystem, where allideas, perspectives and backgrounds are considered. Oursustainability agenda is consolidated under Common
Grounds, our CEO-led sustainability programme that has
become the home of our sustainability journey.

In 2023, we performed our first double materiality
assessment as part of our triennial review, helping
ensure that we hear the voices of all our stakeholders
and determine associated impacts, risks andopportunities. Carrying out a review once every three
years let topics evolve, gives sufficient time to
implement actions based on outcomes, and enables thecompany to align with periodic strategy updates, suchas the Value Creation Plan.
More information on our material topics, and how these
are addressed through our strategy, can be found in the
Common Grounds section of this report.

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

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JDE Peet's N.V.
Annual Report 2023

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at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

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information

34

OUR APPROACHOUR OMNI-CHANNEL APPROACH

IN-HOME CONSUMPTION

AWAY-FROM-HOME CONSUMPTION

We believe that coffee & tea make the world go round, and, every day,millions of people enjoy coffee & tea products supplied by JDE Peet’s.
Because customers and consumers want to access our products in waysthat align with how they live, it is vital that we connect with them through as
many channels as possible. This is why we sell our full product range througha go-to-market approach that covers the entire spectrum of sales channels.

RETAIL CHANNELS

OUT-OF-HOME

Offering a high-quality coffee & tea experience at home

Unique coffee solutions for every occasion

Our consumer-packaged goods (CPG) business offers a complete
range of coffee & tea products to meet consumer preferences andprice partitions, including:• Instant coffee (pure and mixes)• Various single-serve formats• Roast whole beans• Roast and ground• Ready-to-drink coffee beverages• Variety of loose leaf and packaged tea products.

Through our Out-of-Home coffee solutions, we sell or rent a complete
range of professional solutions and complementary coffee systems
across the B2B sector, from offices, universities and hospitals torestaurants, airports and sports venues. These include:• Proprietary and unique liquid coffee concentrate technology• Multi-serve coffee (roast & ground and roast whole beans)• Various single-serve formats• Instant coffee (pure and mixes)• Ready-to-drink coffee beverages• Variety of tea products.

Our CPG business focuses on hypermarkets, supermarkets,
traditional trade markets and, in markets where they operate, buying
groups.

ONLINE SALES CHANNELS
Convenience, choice and world-class innovation
The sale of coffee & tea through online sales channels experienced
another year of strong growth in 2023. In recent years, we haveinvested heavily in this fast-developing channel, and we now offer awide portfolio direct to consumers through branded DTC webshops,
market places, online platforms and leading third-party retailers.

COFFEE STORESIntroducing new product offerings through coffee stores
At year end, we had 658 coffee stores in the United States, China,
Malaysia, the United Arabic Emirates and Italy under leading brandnames, including Peet's, Intelligentsia, Stumptown, OldTown, and12Oz. Our coffee stores play an important role in serving consumers
high-quality fresh coffee & tea, while enabling them to try new productofferings.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

PERFORMANCEREVIEW ANDOUTLOOK
Financial performance

36

Common Grounds

42

Responsible Sourcing

45

Minimising Footprint

68

Connecting People

95

Respecting human rights

128

Non-financial information

134

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

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information

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JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

36

Supplementary
information

FINANCIAL PERFORMANCE
2023 PERFORMANCEIn EUR million, unless otherwise stated:

2023

2022

Total reported sales increased by 0.5% to EUR 8,191 million. Excluding a -3.7% effect related to foreign exchange and0.3% related to scope and other changes, total sales increased by 3.9% organically. Organic sales growth reflects aprice effect of 4.7% and a volume/mix effect of -0.8%. Volume/mix sequentially improved from -3.3% in H1 to 1.8% in
H2. In-Home sales increased by 3.3% and sales in Away-from-Home increased by 6.4%.

Sales

8,191

8,151

Organic change

3.9 %Operating profit

685

949

Financial income and expenses

(143)

69

(5)

—

Income tax expense

(173)

(257)

Net income

364

761

Adjusted EBIT

1,128

1,227

Organic change

1.1 %Adjusted EBITDA

1,426

1,530

Reported earnings per share (EUR)

0.76

1.57

Underlying earnings per share (EUR)

1.51

1.91

Net debt

3,890

4,050

Free cash flow

522

1,358

Net leverage ratio

2.73x

2.65x

Share of net profit / (loss) of associates

Adjusted EBIT increased organically by more than 6%, excluding Russia's performance. Including Russia's
performance, total adjusted EBIT increased organically by 1.1% to EUR 1,128 million supported by an organic increasein adjusted gross profit of 2.9%. In FY 23, the organic adjusted EBIT growth improved sequentially from -3.0% in H1 to
5.5% in H2. Including the effects of foreign exchange and scope/other, the adjusted EBIT decreased by 8.1%.
Underlying profit - excluding all adjusting items net of tax - benefited from stronger core operating performance(+7.8%) which was offset by fair value changes of derivatives & gains and losses in FX (of which the majority in 2023 is
non-cash), translational FX results, and scope/other. Including these, the underlying profit decreased by 20.8% to EUR
734 million.
Net leverage was 2.73x (net debt to adjusted EBITDA), despite currency headwinds, with a net debt of EUR 3.9 billion
on 31 December 2023.
Our liquidity position remains strong, with total liquidity of EUR 3.5 billion consisting of a cash position of EUR 2.0
billion and available committed RCF facilities of EUR 1.5 billion.

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Financialstatements

SEGMENT REVIEWLARMEAEUROPEIn EUR million, unless otherwise stated:

In EUR million, unless otherwise stated:

2023

20222

ChangeOrganic change

Sales

4,719

4,548

3.8 %

4.0 %

Adjusted EBIT

1,006

926

8.6 %

8.6 %

Europe continued its sequential performance improvement in H2 23 with an increase in volume/mix of 5.2% and 2.6%
in price. For the full year, organic sales growth of 4.0% was driven by an increase in price of 6.4% and a decrease involume/mix of 2.4%. Notable strong performances were delivered in countries such as France, Switzerland and mostEastern European markets, and from brands including L'OR, Jacobs and Senseo.
Reported sales increased by 3.8% to EUR 4,719 million, including a net negative effect of 0.2% from foreign exchange
and changes in scope/other. Adjusted EBIT increased organically by 8.6% to EUR 1,006 million, driven by an increasein gross profit. Based on a 4-year CAGR, the organic adjusted EBIT growth was -2.7%.

2

Restated for the combination of the segments CPG Europe and Out-of-Home, see note 2.1 of the Consolidated Financial Statements

Sales
Adjusted EBIT

37

Supplementary
information

2023

2022

ChangeOrganic change

1,498

1,616

(7.3)%

4.7 %

147

296

(50.4)%(21.1)%

Organic sales growth of 4.7% consisted of an increase in volume/mix of 2.7% and 2.0% in price. Most markets in
LARMEA continued to perform well, which was partly offset by the brand transition of our main international brand in
Russia to a local brand, and declining prices in Brazil as a result of lower green coffee prices.
Reported sales decreased by 7.3% to EUR 1,498 million, including a net negative effect of 12.0% from foreignexchange and changes in scope/other. Adjusted EBIT decreased organically by 21.1% to EUR 147 million, reflecting ahigh base of comparison, transactional forex impact and the brand transition in Russia. Excluding Russia's
performance, the organic adjusted EBIT growth was positive. Based on a 4-year CAGR, the organic adjusted EBIT
growth of LARMEA was 6.0%.

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information

In EUR million, unless otherwise stated:

In EUR million, unless otherwise stated:

Adjusted EBIT

Financialstatements

APAC

PEET’S
Sales

Governance andrisk management

2023

2022

ChangeOrganic change

2023

2022

ChangeOrganic change

1,153

1,141

1.1 %

3.9 %

Sales

791

814

(2.9)%

2.1 %

141

147

(4.0)%(1.0)%

Adjusted EBIT

135

123

9.7 %

15.2 %

Organic sales growth of 3.9% was driven by an increase of 2.1% in volume/mix and 1.8% in price. Same store sales
and ticket size were up in Peet's coffee retail stores, and while the In-Home category in the US was softer, Peet's' CPG
business held market shares.

Organic sales growth of 2.1% was driven by an increase of 4.9% in price and -2.8% in volume/mix. Performance wasgeographically broad-based, with notable strong performance in countries such as Malaysia, Thailand and New
Zealand, and from brands including Campos and OldTown.

Reported sales increased by 1.1% to EUR 1,153 million, which included a foreign exchange effect of -2.9%. Adjusted
EBIT decreased organically by 1.0% to EUR 141 million, including higher investments in marketing spend. Based on a
4-year CAGR, the organic adjusted EBIT growth was 11.3%.

Reported sales decreased by 2.9% to EUR 791 million, including a foreign exchange effect of -5.0%. Adjusted EBIT
increased organically by 15.2% to EUR 135 million. Based on a 4-year CAGR, the organic adjusted EBIT growth was
2.8%.

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Financialstatements

NON-IFRS MEASURESUNDERLYING PROFIT FOR THE PERIOD

These materials contain non-IFRS financial measures (Non-IFRS Measures), which are not liquidity or performancemeasures under IFRS. These Non-IFRS Measures are presented in addition to the figures that are prepared inaccordance with IFRS. JDE Peet's' use of Non-IFRS Measures may vary significantly from the use of other companies
in its industry. The measures used should not be considered as an alternative to profit / (loss), revenue or any otherperformance measure derived in accordance with IFRS or to net cash provided by operating activities as measure ofliquidity. More information on the Non-IFRS Measure adjusted EBIT can be found in note 2.1 of the Consolidated
Financial Statements section of this report. Further information on the definitions of these Non-IFRS Measures can befound under the Glossary section in this report. Although the non-IFRS financial measures presented are not measuresof financial performance or liquidity under IFRS, JDE Peet's uses these measures to monitor the underlying
performance of its business and operations. These measures have not been audited or reviewed by our external
auditor. Bridges from the IFRS measures to non-IFRS measures are presented below (in EUR million, unless otherwise
stated):In EUR million, unless otherwise stated:

Sales

Reportedsales

Adjustingitems

Reported
sales

8,191

—

8,191

FX impact

Scope &
other

Organic
sales

303

(24)

8,470

39

Supplementary
information

Operating profit

2023

2022

685

949

Adjusting items:- ERP system implementation

(7)

(8)

- Transformation activities and corporate actions

(126)

(67)

- Share-based payment expense

(44)

(37)

- Mark-to-market results

39

(54)

- Amortisation of acquired intangible assets and M&A/Deal costs

(305)

(112)

Adjusted EBIT

1,128

1,227

Adjusted net financial income/(expenses)

(143)

(15)

Adjusted taxes

(254)

(286)

Adjustments for NCI shareholders

3

10

Underlying profit for the period

734

936

An overview of the adjusting items can be found in note 2.1 of the Consolidated Financial Statements section in thisreport.
:GrossprofitGP to organic adjusted GP

3,018

Adjusting
Adjusted
items gross profit
33

3,051

FX impact
129

Organic
Scope &
adjustedother gross profit
(4)
3,176

UNDERLYING EFFECTIVE TAXIn EUR million, unless otherwise stated:

Reported income tax expense

Operating profit to adj. EBIT

Operating profit to adj. EBITDA

OperatingprofitAdjustingitems

Adjusted
EBIT

685

443

1,128

FX impact

Scope &
other

Organic
adjusted
EBIT

68

63

1,259

OperatingprofitAdjustingitems

Adjusted
EBIT

Adjusted
D&A

Adjusted
EBITDA

685

443

1,128

298

1,426

Reported effective tax rate

2023

2022

(173)

(257)

32.2 %

25.2 %

Adjustments:
Tax reserves, tax audit adjustments and reversals of previous recognised deferred tax

53

Tax effect on adjusting items

(86)

(32)

Underlying income tax expense

(254)

(286)

25.8 %

23.6 %

Underlying effective tax rate

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Strategy andvalue creation

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OUTLOOKOUTLOOK 2024

MEDIUM-TERM TARGETS

JDE Peet's aims to achieve the following in 2024:• Organic sales growth at the lower end of themedium-term range of 3 to 5%• Mid-single-digit organic adjusted EBIT growth
excluding Russia's performance;
Total company: low single-digit growth in H1 andmid-single-digit growth in H2• Net leverage of around 3x (including Maratá andCaribou transactions) supported by Free Cash Flow
above the level of FY 23• A stable dividend

For the medium-term, JDE Peet's targets organic sales
growth of 3 to 5%, mid-single-digit organic adjusted
EBIT growth, and stable to increasing dividends overtime.

Our sustainability outlook for 2024 is incorporated in therespective Common Grounds pillars.

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COMMON GROUNDSThe shift in our Responsible Sourcing pillar is leading to
an exponential increase in our direct involvement atorigin. The more than 60 farmer projects that wecurrently manage directly, contribute to improved
farmer livelihood, fighting unacceptable labour
practices, and protecting nature by targeting the root
causes of issues, which are often driven by extreme
poverty and the need for investment, such as inchildcare centres and quality coffee seedlings.

Since 2021, we have further increased our focus on
creating a better future for our people, the planet and
JDE Peet's. And looking back on the last two years, it isevident that we have made strong progress. Our
ambition and strategy are clear, we have engaged with
our entire organisation and beyond to define and deploy
our roadmaps, and we have developed tools to guideour decision-making and track our progress.
At the same time, what has become increasingly
obvious to us is the impact we are having, and more
importantly will continue to have, on the future of ourpeople, the planet and JDE Peet's. Sustainability is ajourney where every step counts. And while we should
stay humble in this early stage of our transition, we alsoneed to recognise the efforts and results we havealready delivered.

COMMON GROUNDS SUPPORTS
JDE PEET'S' AMBITION TO
CHAMPION SUSTAINABLE
GROWTH IN THE COFFEE & TEA
SECTOR
Coffee farmers, and smallholder farmers especially, areessential to our sustainable growth ambition. This is
why building resilient farming is so critical. Coffee yields
can vary enormously, from a couple of hundredkilograms per hectare to several tonnes per hectare,depending on the country, with Brazil and Vietnam
leading the way. Our agricultural training programmes,
delivered by our partners at origin, work to continuously
bridge this gap. This is the first step towards improving
farmers' livelihoods and helping them exit extreme
poverty. And the impact on farmer income goes far
beyond uncertain pricing support, helping to provide
farmers with such sustainable assets as education or
quality coffee seedlings.

Since 2015, we have reached 700,900 farmers and ourcommitment to coffee farmers continues. Each year we
increase our investment to help build a stronger andmore sustainable coffee supply chain.
The future of coffee farming is also closely linked to thewell-being of our planet and its climate. Here again, weare actively playing our part. Not only did we commit to
the Science Based Target initiative in 2021, but we havealso been diligently delivering on our targets to reduce
our Scope 1, 2 and 3 greenhouse gas (GHG) emissions.
The decisions we make along our supply chain and in
R&D, to reduce our carbon footprint and packaging
waste while being mindful of health and nutrition, guideour business and help us understand the impact on our
financial and non-financial performance.
This is increasingly related to our businessperformance, as our customers are engaged in thesame journey, especially when it comes to climate. Our
customers need to decrease GHG emissions to help
deliver on their financial growth, and JDE Peet's ispositioned as a partner of choice because we arecommitted to delivering carbon reduction. Our productrange contributes directly to both the financial growth of
our customers and the delivery of their planetary
ambitions. Delivering on the triple bottom line is
becoming a true competitive advantage, which we canleverage to deliver sustainable growth.
Finally, none of this would be possible without the
support and engagement of our people and ourpartners along the value chain. Sustainable growth

involves a mindset change, and it will require us to get
the best out of our teams and leverage our diversity tofind solutions for the future.
JDE Peet's stands out among coffee companies
through its commitment to authenticity, engagement,
inclusiveness and intentionality. Our primary goal is tocreate meaningful impact. We strongly believe that the
future of the coffee & tea industry hinges on our ability
to strengthen resilience across the entire value chain.
This strategy equips us to navigate future challenges
while fostering growth to support our stakeholders
effectively. We are still at the beginning of our journey
and, despite our strong start, the effort required todeliver on our ambition remains great. However, we willcontinue to focus on delivering true impact andensuring a better future for coffee & tea.

Laurent Sagarra
Vice President Sustainability

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JDE Peet's' Common Grounds 2023 commitments and progress
CommonGrounds pillar
Responsible
Sourcing

Minimising
Footprint

Connecting
PeopleOne of our most material challenges is the responsible
sourcing of coffee & tea, our two key raw materials,
which are grown in countries that face significant socioeconomic and environmental challenges. Common
Grounds aims to address these challenges byidentifying the main issues occurring along the entire
supply chain, so that we can work with supply chain
participants to develop solutions that ultimately lead tovalue creation for the company and our stakeholders.

One example is low coffee yields that impact somegrowing regions, and which can place farmers underfinancial strain and potentially lead to deforestation, as
smallholder farmers seek to increase their production
area. This, in turn, exacerbates climate change, further
compounding the problems farmers face.
Our response through Common Grounds is to co-fund
the development of resilient coffee cultivars and thepromotion of regenerative agricultural practices, as well

JDE Peet's' sustainability commitment

Year

Result2022

Result2023

Working towards 100% responsibly sourced green coffee

2025

77 %

83.8 %

Working towards 100% responsibly sourced tea

2025

27 %

40 %

Working towards 100% responsibly sourced palm oil

2025

100 %

100 %

Directly reaching 500,0000 smallholder farmers (since 2015)

2025

590,000

700,900

Reduce absolute Scope 1 & 2 GHG emissions by 25% (vs
2020)

2030

15 %

21 %

Reduce absolute Scope 3 GHG emissions by 12.5% (vs 2020)

2030

(1)%

9%

100% of our packaging components designed to be reusable,
recyclable or compostable

2030

78 %

79 %

18% water intensity reduction per tonne of production (vs
2020)

2030

6%

1%

Halve our total waste (vs 2020)

2030

(20)%

(37)%

Maintain waste-to-landfill under 1%

2030

1.3 %

1.1 %

40% women in leadership positions

2025

41 %

41 %

100% of manufacturing sites food safety and quality verified byan international recognised certification body

2025

75 %

85 %

0.4 Total Recordable Incidents Rate

2030

0.46

0.59

as investing in projects to build the capacities ofsmallholder farmers. We believe that training farmers inregenerative agriculture will lead to improved coffee
yields and farmers' income, while helping to prevent
deforestation. This will contribute to a sustainable
coffee supply going forward, benefiting all of our
stakeholders.
Throughout this section, we explain the progress wemade in 2023 across the three pillars illustrated above,from GHG emission reduction along the value chain inline with our SBTi commitment, to multiple initiatives
aimed at reducing energy, water and packaging waste;from our responsibly sourced raw materials to active
smallholder farmer projects across the world to securethese materials and improve farmer livelihoods; andfrom our employees and all relevant stakeholders to our
initiatives in place to provide an inclusive and safe place
to work.

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OUR THEORY OF CHANGE** Theory of change is based on: Patricia Rogers, 2014, Theory of Change, Methodological Briefs—Impact Evaluation No. 2, UNICEF Office of Research, Florence

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RESPONSIBLE SOURCINGSUMMARY KPIs3
Responsibly sourced raw materials purchases4,5,6
Green Coffee
GlobalGreen Coffee
EuropeTea

Palm oil

83.8%

97%

40%

100%

Smallholder farmer engagement
Total number of smallholder
farmers reached 4

Smallholder farmers
reached in 2023 5

No. ofactive projects

Active projects
in no. of origins

700,900

110,900

63

23

Deforestation-free main commodities

3

Mapped coffee plots6
that are deforestation-free

Virgin paper and pulp
certified

99.9%

34.4%

More information can be found in the Overview of our non-financial
information tables and the Non-financial information section of this report.
4
Cumulative smallholder farmers reached since 2015.
5
Newly registered and trained smallholder farmers during 2023.
6
For more details of our ongoing deforestation-free assessment refer to the Nature section of this report.

Performance review
and outlook

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JDE Peet's N.V.
Annual Report 2023

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Introduction

APPROACH: ASSESS, ADDRESS,PROGRESSOur Common Grounds programme embodies ourambition to positively impact people, our planet, andthe future of coffee & tea, and is driven by our purpose"To unleash the possibilities of coffee & tea for a better
future". The success and resilience of our business isreliant on our ability to deliver positive social andenvironmental impacts along our supply chain.
Our Assess, Address, Progress approach enables us totake action to prevent or reduce any negative impacts
we have on people or the environment in our supply
chain. It builds on our years of knowledge andexperience in coffee & tea and the introduction of new
tools and technologies that we believe will support our
ambition.
By focusing on transparency and data-based businessdecisions, we are able to directly engage and support
farmers and nature. We are fully aware that many issues
are complex and will take years to solve, and that wecannot act alone. While acting responsibly and doing
our part, we will also continue to engage suppliers andour partners in collaborative actions in coffee & tea
sourcing origins.
•

Assess: We apply third-party assessments tounderstand and map our supply chains and identify
focus areas. This includes a representative sample
of on-the-ground farmer assessments, covering

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critical areas such as child labour, working
conditions, climate and nature, as well as engaging
our suppliers in self-assessments to determine their
responsible business practices and risks andopportunities of farming communities.
•

Address: We use the information and insights toaddress identified gaps by establishing multi-year
farmer programmes, where we partner with farmers,
cooperatives, suppliers, NGOs, and governments toimprove standards across the relevant focus areas
identified by these assessments.

•

Progress: We chart and further our progress bymeasuring key performance indicators (KPIs) within
our farmer programmes, sharing and learning fromthe insights of the interventions.

It is this rich diversity of origins and smallholder farmers
that we need to continue to protect and invest in tosafeguard the future of both coffee & tea, and this isreflected in both our sourcing strategy and thegeographic reach of our farmer programme. In line withour climate risk (see the TCFD analysis of this report) weare investing in long-term solutions to ensure thatsustainable coffee & tea farming is future-proof, despite
the climate crisis and the challenges this brings to crop
production and the continuing social and economic
disruptions that affect the most vulnerable farmers andtheir communities.
As a sector, we are also seeing a dramatic increase in
the number and scope of regional and national laws andregulations focusing on social and environmental
reporting and due diligence. At JDE Peet's, we haverefined our approach in responsible sourcing to our
extended supply chains following the principles ofinternationally recognised frameworks, such as theOrganization for Economic Co-operation andDevelopment (OECD) Due Diligence Guidance for
Responsible Business Conduct. This means we areapplying a data-driven, risk-based approach, andactively taking ownership of what we consider to be themost important of all challenges for our business –securing the future of coffee & tea. Our goal is to drive
genuine change to protect and build long-term
resilience for our business.

We are serious about coffee & tea — it's what we know
and do best. Yet, producing amazing cups of
responsibly sourced coffee & tea is not a simple
exercise. It takes dedication and expertise, fromagricultural research and science, to the smallholder
farmers and workers who grow and harvest the plants,
collection, processing, and quality control, through tothe final product that ends up in one of our iconic
brands. This is why we believe responsible sourcing isabout understanding our supply chain and taking action
to avoid, mitigate and address the risks when sourcing
the agricultural commodities we rely on.

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PROGRESS IN 2023
During the year, we made strong progress towards ourcommitment of 100% responsibly sourced green coffee
by 2025, reaching 83.8% (2022: 77%), including 97%
responsibly sourced into Europe. By year end, we had aportfolio of 63 active projects, through which we havereached more than 108,000 smallholder farmers in
2023, bringing the total number of smallholder farmers
we have reached since the inception of the Common
Grounds programme to 700,900. We continued to workwith Enveritas, a non-profit organisation that has
pioneered a data-driven approach to sustainability. For
2023, Enveritas's assessments of our supply chain
covered 440,290 farms in 23 countries.
In line with the Global Coffee Platform's Coffee
Sustainability Reference Code, we updated our
Responsible Coffee Sourcing Principles during the year,
identifying four components as critical in terms ofseverity and negative impact: child labour, forced
labour, deforestation, and banned pesticides. We aim toaddress these issues with the highest priority when they
are found in our supply chain.

Introduction

Strategy andvalue creation

Performance review
and outlook

sustainability and commercial teams working closelywith coffee farmers and the local infrastructure. Theirbusiness practices, insights and on-the-ground
operations offer detailed insights into the coffee supply
chain.
In 2023, we issued the fourth edition of our SupplierSelf-Assessment Form (SAF). This is designed to help
us understand both the level of alignment of our coffee
suppliers to our Responsible Sourcing Principles andthe levels of risk perceived in the regions from where wesource our green coffee. Additionally, it serves as thecornerstone to our due diligence approach. We sent
249 self-assessment forms to 88 green coffee suppliers
representing unique supplier-origin country
combinations, with a response rate of 83%.

OUTLOOK
In 2024, we will continue our journey towards 100%
responsibly sourced raw materials. As part of our
supplier engagement, each participating supplier will
receive country-specific sustainability scorecards,
which aim to facilitate a shared understanding on key
sustainability issues and, where applicable, draw out
corrective action plans.

Another key topic in 2023 was the progress we aremaking in strengthening our Human Rights Due
Diligence Approach, details of which can be found in
the Human Rights section of this report.

At the beginning of the year, we will consolidate the risk
assessments we carry out across our coffee & tea
landscape, and compare these with our suppliers.

Our suppliers form an important part of our responsible
sourcing journey, with the majority having verticallyintegrated operations in the producing origins, including

We will also continue to be actively involved incollaborative initiatives with other industry players,
governments and civil society actors. Key focus areas

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will be on nature, regenerative agriculture and humanrights. We are also expanding our risk-based approachfor deforestation and human rights across our supply
chains.

SMALLHOLDER FARMERENGAGEMENT: FURTHER OUTREACH
AND EXPANSIONAPPROACH
Our Common Grounds programme dates back to 2015,
and we have increased both the scale and reachthrough investments and partnerships in our key
sourcing regions. Through this programme, we arepartnering with farming communities, suppliers, nongovernmental organisations, and local government
bodies to deliver smallholder farmer projects that
implement sustainable and regenerative farming
practices, including climate-smart agriculture, crop
quality, biodiversity, and farmer livelihoods. The goal is
to further develop resilient environmental and socioeconomic systems, which is vital if we are to safeguard
our collective future. With coffee & tea produced
predominantly by smallholder farmers in over 70
countries, our journey of engagement and responsibility
clearly begins with the farmers and workers in our
supply chain.

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2030 goal. This targeted funding goes towards setting
up collective initiatives around living income, climate
adaptation and sustainability.

COLLECTIVE ACTION LOCALLY AND
GLOBALLY“GCP has demonstrated that change beyond
supply chains is possible when GCP member
companies work with our NGO and government
partners through collective action. This precompetitive collaboration is crucial to generateadequate levels of investment and change. No one
company can be effective by itself. Collective
action is essential to not just ensure compliancebut also accelerate measurable sustainability at
scale.”

Each of our projects are designed with the smallholder
farmer and community in mind, with activities andinterventions that can drive meaningful change, arescalable to reach more people, and can be replicated inother areas. To measure the effectiveness of theengagement, we collect data for monitoring andevaluation and to chart farmers' response to theengagement.

Securing the future of coffee requires more prosperous
living for smallholder coffee farmers. As a founding
signatory of the ICO Public Private Taskforce, we areworking with sector peers in the Living-Prosperous
Income Workstream to tackle poverty among coffee
farmers by assessing real and target income in coffee
producing countries. There is a collective interest to
close the gap between the real and living income forcoffee farmers.

COLLABORATION IS CRUCIAL
While we take responsibility to address the priority
issues in our supply chains and continue to expand our
farmer programme to include more farmers andgeographies, the challenges the coffee & tea industry
face are complex and must be tackled collectively.

As an active member of the Global Coffee Platform(GCP), we have played a role in the development of
GCP's new strategy of achieving transformationalchange for the prosperity of one million smallholder
coffee farmers. In 2023, JDE Peet's was one of eightcompanies that contributed USD 1.5 million to GCP's

Carlos Brando,
Chair Global Coffee Platform“As a pure play coffee business, some of ourmaterial topics include farmer livelihoods,
sustainable agriculture, human rights and climate
action, all of which are embedded in oursustainability programme Common Grounds. We
have actively supported over 690,000 smallholders
through our inclusive Assess, Address andProgress approach. However, many sustainability
challenges require systemic change andcollaborative action if we want to see thriving,prosperous coffee farmers today and tomorrow.”
Nadia Hoarau-Mwaura (Sustainability Director
JDE Peet’s)
Board Member - Global Coffee Platform

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We are also keenly aware that research and science are
essential for securing a long-term, sustainable supply of
quality coffee. Our engagement with World Coffee
Research (WCR) is one of the ways to urgently speed
up the availability and access of improved varieties andbetter coffee plants to farmers. The research we
conduct will determine what coffee we drink in the
future—and using advances in agricultural science it ispossible to dramatically improve coffee yields, quality,
climate resilience and farmer profitability.

PROGRESS IN 2023
We are proud to say we exceeded our 2025
commitment early, and through our Common Grounds
programme we have set up over 15 projects in 23
countries, reaching over 110,000 smallholder farmers in
2023. We are creating value through the clear(commercial) investment choices we have made toaddress priority issues in the supply chain. This means:• Working with farmers to provide technicalassistance on climate-smart agriculture• Setting up nurseries and mother gardens to
distribute disease- and climate-resilient coffee
varieties• Addressing water sanitation issues in local
communities• Increasing farm productivity through training,coaching and support, including on alternative
sources of farm income• Promoting women's involvement and empowerment
in all our projects

Introduction•

Strategy andvalue creation

Performance review
and outlook

Increasing the involvement of youth, creating
employment opportunities in rural areas and within
the coffee value chain.

OUTLOOK
We continue to grow and scale up our farmer
programme in the key origins in our supply chain, and it
is important that we are able to represent the richdiversity of origins and farmer producing realities. In
2024, we plan on introducing new programmes inAfrica, where there are many opportunities to generate
positive long-term impact among smallholder farmers.

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SHAPING THE FUTURE OF COFFEE
Since 2012, JDE Peet’s has invested in World Coffee
Research (WCR) to drive innovation in coffee agriculture andsecure a more sustainable future for our industry. The
challenges facing coffee production are multifaceted andcomplex, but innovation can create new solutions. ThroughWorld Coffee Research, JDE Peet’s unleashes the power ofplant varieties to urgently secure a diverse and sustainablesupply of quality coffee today and for generations to come.

"Coffee agricultural innovation ensures farmers haveaccess to climate-resilient varieties for decades tocome. Through shared investment with WCR
member companies, JDE Peet's is ensuring thatcoffee remains a strong business opportunity forfarmers around the world."—Dr. Jennifer “Vern” Long, WCR CEO.
Highlights from our year in collaboration include:• Support to launch Innovea, the world’s first global,
collaborative programme to breed new, climate-resilientarabica coffee varieties, involving nine countries aroundthe world. Over 5,000 novel seeds are germinating
globally.
• Releasing a new arabica DNA fingerprinting tool forcommercial availability, which dramatically reduces thecost of variety identification and genetic traceability for
quality assurance in renovation projects.
• Calculating coffee’s $452 million/year innovation crisis in
agricultural research in order to mobilise greater global
funding of coffee agricultural research for key origins like
Ethiopia.
• Supporting the world’s millions of Robusta coffee farmers
to make more informed decisions about which varieties toplant through an open-access Robusta Variety Catalog,
as well as resources to support higher-quality trees like a
Robusta grafting manual and nursery management
videos.

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63 PROJECTSACTIVE PROJECTS WITH
SMALLHOLDER FARMERS

Financialstatementsà

23 COUNTRIESWORLDWIDE

50

Supplementary
informationà

700,900

SMALLHOLDER FAMERS REACHEDDIRECTLY SINCE 2015

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COFFEE: SUSTAINABLE
AGRICULTURE
APPROACH
As a pure-play coffee & tea company, we are fully
aware of our responsibility and the importance of
safeguarding the future of coffee, a better future where
farmers are prosperous, and nature thrives. Our double
materiality assessment confirmed farmer livelihoods,
biodiversity, human rights and sustainable agriculture asmaterial topics under the Responsible Sourcing pillar.
Coffee is imported from over 70 countries, where it iscultivated on 12.5 million coffee farms, of which 85%
are smaller than 2 hectares. It has been estimated that
smallholder farmers produce up to 73% of all coffee. To
adapt to market quality definitions, 95% of the coffee
that reaches a processing mill or a cooperative will beclassified, blended and homogenised in compliancewith the importing market and clients' requirements.
Because of how the coffee value chain is structured, ineach 60 kg bag of green coffee it would be possible tofind beans from up to 100 different locations. This
makes achieving traceability a complex and highly costintensive task. Given the complexity of ensuring
complete traceability to the coffee supply chain, we aremaking our supply chain more transparent by mapping
our green coffee purchases to the specific region of a
producing country using our Assess, Address, Progressapproach to understand the risks and address theseover time.

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Our Responsible Coffee Sourcing Principles are built
around three industry-aligned thematic areas that define
our ambitions and related practices to address thesematerial issues. Embedded in the principles, we clearlylay out our vision of regenerative practices, guiding our
suppliers and empowering the smallholder farmers in
our projects on best practices to nourish soil and water,
use agrochemicals responsibly, minimise crop waste,
capture carbon, and protect and regenerate farmenvironments. Farmer adoption of regenerative
practices across our supply chain directly impacts ourtarget to reduce GHG emissions, increase biodiversity,and protect and safeguard water systems.

The focus on regenerative agriculture increased across
many of our farmer projects through locally relevant
technical support and financial assistance to farmers.
Essentially, we need to encourage regenerative
agriculture as this type of farming, when adopted to
local conditions, helps nature and farmers to flourish
together. To be restored and protected, the soil needs
to have organic matter returned to it, and the farmers
know this. Many of the farmers we have spoken to,when asked what is the most important thing on theirfarm, respond: "the soil, el suelo".

PROGRESS IN 2023
As part of our goal to create a better future, we
increased our expenditure to integrate more coffee
volumes and expand our farmer programme. This has
enabled us to achieve 83.8% of responsibly sourced
coffee versus our commitment towards 100% by 2025.
We sourced green coffee from over 32 countries, andfor 23 of these countries we have detailed sustainability
risk assessments from the specific regions traceable toour coffee purchases.
The data used to assess sustainability risks is based on
randomised and unannounced surveys, which wereconducted by Enveritas among suppliers and acrosssourcing regions of our supply chain during the2023/2024 coffee harvest season. To ensure we have aholistic view of the risks, we also use information from
Rainforest Alliance and 4C certification audits andcountry reports.

In the municipality of Victoria, Yoro in Honduras,brothers Pedro and Doroteo Martínez are living
examples of strong commitment to regenerative
farming.

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On their farm, they breed earthworms to obtain foliars7,
they collect wastewater in barrels and in a well, andthey mix the pulp to make organic fertilisers. This onfarm production of organic fertiliser has significantly
reduced their costs of using synthetic agrochemicals.
They understand the importance of working in harmony
with the environment, which has helped them become
successful producers and community leaders. The
Martínez brothers are two of the 8,000 farmers in the
Coffee Alliance project that we have been partneringwith since 2018 through CoHonducafe and USAID.

Introduction

Performance review
and outlook

SBTi carbon-reduction commitments, we have begun
conceptualising and designing several new projects for2024. After assessing projects that were due to end, we
have concluded that a number of them still have thepotential to make a positive impact. Consequently, we
will scale up the size and scope of several projects in
2024 through extensions. Our focus remains on
reducing our Scope 3 GHG emissions through climatesmart agriculture and regenerative agriculture.

More information on our farmer programmes can befound in the Active projects map section of this report.

OUTLOOKAs we strengthen our due diligence approach toaddress both environmental and social issues, it isessential that we access timely and robust data fromacross our entire supply chain. Now, more than everbefore, we need to have comprehensive andrepresentative information to drive our actions andchoices for a sustainable coffee future. A future thatallows us to source compliant coffee, from a diverse
range of origins, maintaining the flavours and qualities
we need, and a future that is available to all coffee
farmers.
Using the many insights from our supply chain risk
assessments, end-line evaluations of completed
projects, and our commitment to deliver against our
7Strategy andvalue creation

Foliar feeding is a technique of feeding plants by applying liquid fertiliser directly to the leaves.

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informationRESPONSIBLE COFFEE SOURCING PRINCIPLES

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Alternative weed management
strategies in Costa Rica
COMMODITY: Coffee
TIME FRAME: 2019-2023
LOCATION: Costa Rica
SMALLHOLDER FARMERS REACHED: 350
PARTNERS: Instituto del Café de Costa Rica

Weed management is one of many topics farmers must take into consideration
while growing coffee. Left unchecked, weeds can siphon off valuable nutrientsfrom coffee plants and inhibit their productivity. Short on time and otherresources, many farmers rely on agrochemicals to tame weeds; however,increasingly this runs up against changing societal expectations and evolving
understanding of this practice.
In response to this challenge, in 2019 we partnered with the Instituto del Caféde Costa Rica (ICAFE) to identify alternative weed management options tailoredto the Costa Rican coffee sector. The research-focused partnership exploredmultiple options, evaluating live ground cover, changing dosages, and manual
weed cutting among others, all while paying close attention to affordability andaccessibility for smallholder farmers. In 2023, the partnership shared its findings
and recommendations with farmers, hosting 16 trainings throughout Costa Rica
and trained over 350 farmers. Additionally, this partnership produced two
training videos, accessible to anyone with an internet connection, to enableongoing knowledge transfer on this important topic.

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Social well-being collective
action initiative
COMMODITY: Coffee
TIME FRAME: 2021-2024
LOCATION: Minas Gerais
SMALLHOLDER FARMERS REACHED: 2,000
PARTNERS: Global Coffee Platform, Cecafe, InPACTO

With our ambition towards delivering a prosperous farming
community, we are partaking in a living income study in
Brazil's key coffee-growing regions to define minimum
productivity levels and farm size to reach a living income.
Through rigorous data collection and monitoring, we willdevelop a vulnerability index for the coffee sector to allow
risk mapping and mitigation. Results from the study will
inform training and education across the value chain, andenable such targeted interventions as improving theavailability of potable water, housing and lodging conditions,and remediating labour issues.

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CASE STUDIESOUR STRATEGIC PARTNERSHIPWITH SUCAFINA IN PAPUANEW GUINEACOFFEE PRODUCTION IN PNG
Coffee was introduced to Papua New Guinea(PNG) in 1890, and the first official exports were
to Australia in 1901. At that time, most coffee wasgrown on large plantations on level ground. By
the 1950s, smallholder farmers were growing
coffee on smaller, steeper plots of land at 1,500+
metres above sea level.
Unfortunately, many of the challenges smallholder
farmers faced in the 1950s remain the same
today. Their remote, high-altitude location creates
ideal conditions for coffee cultivation but, withouta strong infrastructure, it is difficult for farmers tobring their coffee to market. This challenging
infrastructure means most smallholder farmers
sell their coffee to middlemen who are able tocollect and transport the coffee, resulting in thesmallholder farmers receiving less than they could
for their coffee. Additionally, the remoteness of
their growing locations means farmers struggle toaccess inputs, technical assistance and tools,
such as pulpers.

SOURCING FOR BETTER
We began partnering with Sucafina in 2023, our firstjoint programme in the highlands of Papua New Guinea.
This multi-year partnership aims to increase smallholder
farmer equality, economic prosperity, and embedsustainable practices in one sweeping and impactfulproject.

HOW WILL THIS BENEFIT SMALLHOLDER
COFFEE FARMERS?
With JDE Peet’s as the dedicated buyer of their coffee,
the smallholder farmers have clear access to the market
with a roaster who values and rewards their efforts. We
believe this support and long-term vision will help givethem greater security to confidently produce superb
coffee.

WHAT IS THE BENEFIT TO SUCAFINA?
As a leading sustainable Farm to Roaster coffeecompany, Sucafina is dedicated to creating anenvironment where farmers can sustainably andprofitably farm coffee. This project will improve coffee
education, gender equality, access to markets anddeforestation prevention for coffee producing
communities in PNG, all of which will lead to better
coffee.

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What motivates JDE Peet’s?
We continue to focus on origin diversity and we areconnecting our commercial and sustainability efforts
into a Responsible Sourcing programme on the ground.
This programme is centralised around the three main
pillars of our Common Grounds programme and aligned
to upcoming EU regulations, and addresses:
a. Equality of people: gender and youth inclusion,
child labourb. Sustainability of land: climate change anddeforestationc. Prosperity of farmers: yield improvement, income
diversification and farm management.
Over the course of 4.5 years, we expect to directly
impact 4,000 smallholder farmers and, as with all our
projects, we prioritise gender inclusion and equal
access to training for all.
We constantly challenge ourselves and our partners andare proud to work in a very remote coffee origin. We
remain purposeful in our strategy and are investing in aregion where smallholder farmers are in much need ofsupport.

“Actions on human rights, deforestation andcarbon emissions are increasingly embedded incoffee supply chain initiatives. We are thankful
to JDE Peet’s for choosing SUCAFINA as apartner in Papua New Guinea to support 4,000
smallholder coffee farmers. We designed the
project based on a risk assessment thathighlighted the risks in the supply chains, while
also suiting farmers’ abilities and meeting theneeds of the market.’’Alex Casserly
SUCAFINA Country Manager PNG"The strategic partnership with SUCAFINA in
Papua New Guinea, which is embedded in our
Common Grounds programme, is essential tosupport the smallholder coffee farmers
because it combines local expertise in coffee
cultivation with market access and resources.
This collaboration aims to increase equality,
economic prosperity and embed sustainable
practices. We believe in coffee origin
diversification, which is essential to a more
resilient coffee world. Investing in smallholder
coffee farmers is not just about nurturing thepresent, but also about safeguarding the very
essence of coffee for future generations."

Judith de BoerJDE Peet’s Global Green Coffee Partnership
Programme Lead

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PRESERVATION OF NATURE AND
BIODIVERSITY: THE IMPORTANCE
OF RICH HABITAT

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APPROACH
We recognise that coffee supply chains and natural
habitats, which are home to a wide range of flora andfauna, are often closely connected. Nature-related risks
threaten to jeopardise business continuity and growth if
left unaddressed. As the biggest biodiversity conference
in a decade, the 15th Conference of Parties to the UN
Convention on Biological Diversity in 2022 was a pivotal
moment, giving rise to the Kunming-Montreal Global
Biodiversity Framework (GBF), which contains goals
and targets to protect and restore nature. As a result of
this, we are now working towards a steadfast
commitment to understand the pivotal drivers behindbiodiversity loss and elevating our nature-focused
agenda.
We are already reviewing and responding to nature andbiodiversity-related risks, and our upstream value chain
is embedded in our Responsible Coffee Sourcing
Principles, which has Board-level oversight andexecutive management-level responsibility. In our
Assess, Address, Progress approach to value chain
impacts, we rate farmer risk in close alignment to the
Global Coffee Platform (GCP) Coffee Sustainability
Reference Code, which includes sustainable agriculture
aspects related to soil management, agroforestry,
protection of water courses, as well as other social andeconomic aspects. We also leverage supply chainlinked landscape reporting, which includes biodiversity
topics on soil health or regenerative agriculture and theprotection of water bodies.

We manage our indirect impacts on nature andbiodiversity by collecting data on nature-related risks inthe sourcing region, along with coffee suppliers'alignment to our Responsible Coffee Sourcing
Principles through our Supplier Self-Assessment Forms,
conducted in November 2023. We found that while
hunting or trapping of protected species is not a key
risk in our upstream value chain, several origins could
benefit from our Common Grounds smallholder farmers
projects, especially in the realms of promoting Good
Agricultural Practices (GAP) that protects the integrity of
the farm ecosystem, protects natural vegetation,
prevents habitat conversion, and consequently
promotes biodiversity.

PROGRESS IN 2023
As the Global Biodiversity Framework has been
adopted to focus on nature, we are aligning ourapproach to identify and address impacts, risks, andopportunities with the Science Based Targets Network(SBTN) and the Taskforce on Nature-related Financial
Disclosures (TNFD). In 2023, we became an SBTN
Corporate Engagement Partner, seeking to advance ourwork on this topic. We follow the process set up for
identifying and assessing dependencies and impactrelated biodiversity through the SBTN approach. As
recommended by the TNFD framework, our approach isaligned with the LEAP approach which consists ofLocate, Evaluate, Assess, and Prepare. Additionally, we
continued our engagement with the One Planet
Business for Biodiversity (OP2B) coalition in the interestof protecting and enhancing biodiversity.

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The outcome of our biodiversity risk and naturepressures assessment confirmed our double materiality
assessment in 2023, which identified that for our
upstream value chains, biodiversity and deforestation
are material topics. Our impact screening through LCA8
contribution analyses concluded that most non-land
use change drivers are directly connected to fertiliser
application (56-95%), either through emissions on farms(ammonia, NOx, phosphorus) or fertiliser production.
Fertiliser production and use alone makes up 63% of
our Scope 3 upstream emissions, according to thirdparty estimations.
For our own operations, we conducted an assessment
using the IBAT (Integrated Biodiversity Assessment
Tool), overlaying our manufacturing sites with datasetsfrom the International Union for Conservation of Nature(IUCN)'s Red List of Threatened Species, the World
Database on Protected Areas and the Word Databaseof Key Biodiversity Areas. We found that six of ourmanufacturing units, with an estimated operational site
size of 17.42 km2, are located in or near three terrestrial
biodiversity value areas: Plaine du Forez in France,Doğu Karadeniz Dağları in Turkey and
Mittelwesermarsch in Germany. However, none of oursites in proximity of those key biodversity areas havebeen expanded and we continue to operate within
operational consents in consideration of pollutants oflocal biodiversity as stipulated by local regulations.

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We also recognise the interdependencies on the topics
of nature and biodiversity in nature with our climate
impacts. For coffee, most other biodiversity risks, suchas freshwater pollution, are directly linked to factors that
influence our carbon footprint. Consequently, carbon
footprint is also used as a proxy. For our work on
operations and the climate, please refer to the
Minimising Footprint section of this report.

OUTLOOK
Looking ahead, we will continue to deepen our
understanding through the SBTN approach todetermine ecological thresholds before setting targets.
We will assess our nature-related risks andopportunities and prepare to respond and report onmaterial nature-related issues. In particular, whendatasets from external parties and supplier selfassessment questionnaires enable us to identify coffee
origins that are not managing their material issues, suchas soil health, we link them to project interventions toimprove their agricultural practices.

LCA: Life-cycle assessment - a methodology for assessing environmental impacts associated with all the stages of the life cycle

All sites were assessed on their biodiversity risk, only sites in inside,adjacent, near or close proximity were listed

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Sustainable rejuvenation of coffee
production in Western Tanzania
COMMODITY: Coffee
TIME FRAME: 2019-2024
LOCATION: Kagera, Tanzania
SMALLHOLDER FARMERS REACHED: 28,465
PARTNERS: Café Africa, Tanzania

From business as usual to "Coffee as a family business""I was selected to be among the lead farmers to participate in trainings on Good
Agricultural Practices, and now I am sharing this with other farmers. I have beenable to do intercropping on my farm by planting trees, growing bananas andinstalling 15 beehives. My yield has increased thanks to stumping old coffee trees
and I have additional income from selling honey and bananas to a local market.
My family has benefited from the income from our coffee farm - our familybusiness. I have expanded my farm from 3 acres to 5 acres by purchasing moreland , planting good quality coffee seedlings provided by Tanzania Coffee
Research Institute (TACRI). My two children have been able to go to school and I
managed to pay their tuition fees without any problem"
Mlokozi Salvatory, coffee farmer from Kenyana village, Missenyi district, Kagera

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Water at the heart of the coffee grower
communities in Tolima & Cauca
COMMODITY: Coffee
TIME FRAME: 2019-2023
LOCATION: Tolima & Cauca, Colombia
SMALLHOLDER FARMERS REACHED: 2,957
PARTNERS: Federación Nacional de Cafeteros deColombia (FNC), GIZ
The success of this project is largely due to a dedicated team of agronomists andenvironmental experts. The main objective has been to empower the coffee grower
communities to make the best decisions for their economic well-being and social andenvironmental development through community-driven water access and farm management
initiatives. Some achievements of the project include:• 7,294 households with access to improved water services• 1,903 farmers adopted water- and climate-smart good agricultural practices• 382 coffee mills upgraded in water efficiency systems.
"For me, participating in phase one of the project was a deeply emotional and satisfying
experience. Thanks to the support of JDE Peet's, I was able to work as an environmental andsanitary engineer. I had the privilege of working with more than 1,200 coffee-growing families
in the municipalities of Libano and Villahermosa, building trust, transferring knowledge andpromoting sustainable practices to generate harmony between coffee production and natural
resources.
During my field trips, I was able to see transformations in the region, from improvements in thequality of life of the families benefiting from the project, to the encouragement for the start ofnew productive projects that strengthen issues of gender equity and generational matching.
This experience has left an indelible mark, to build ties in the community, with the convictionthat work in the field is essential and a driving force for positive and sustainable change in theregion."Paula Milena Cortés, environmental specialist, Libano & Villahermosa, Tolima

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WATER
Coffee agricultural production accounts for 98% of our
total water footprint, which is primarily rain-fed. The
water stress risk associated with coffee growing islimited when compared to other crops that are more
dependent on irrigation. Analysis from the World
Resource Institute (WRI)'s Aqueduct Water and Food
tool shows that there are 29,000 hectares of irrigatedarabica coffee growing under high and extremely highwater stress conditions, which means that about 8% ofcoffee products are produced in water stressed areas.
For robusta coffee, very few are produced in water
stressed areas.
The effects of climate change are leading to extreme
weather patterns, with a lack or abundance of waterleading to droughts or excessive rainfall, impacting
coffee yields. Consequently, we are investing throughour farmer programmes to further decrease ourdependency on irrigation and freshwater consumption,
while building resilience for future potential water
scarcity and erosion protection.
We assess the water risks of our full supply chain
annually. Through a combined analysis of different tools
and an external analysis from Enveritas, we are able toupdate the risk profile of specific origins and regions.
This gives us a detailed picture on how to adjust oursourcing (if necessary) and assess the materiality of therisk. For detailed insights into how we are addressing

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water as a material topic, please refer to Managing ourwater use section of this report.

DEFORESTATION-FREE SUPPLY CHAINS
Biodiversity & deforestation is one of our material
topics, and we are working towards a deforestation-free
supply chain in our sourcing of green coffee and paper& pulp. Having assessed our key impacts anddependencies in nature in alignment with the TNFD and
SBTN approach, in 2023 we reconfirmed theimportance of the protection of forests9.
Forests are essential for storing carbon, managing
temperature and rainfall pattern, protecting biodiversity,and have a key role to play in the adaptation to, and themitigation of, climate change as a nature-based
solution. Forest protection is also key to achieving our
net-zero goal, as historical deforestation (looking back
20 years) accounts for 8% of JDE Peet’s carbon
footprint.
Forests are often home to smallholder coffee farmers,
who work in nature to sustain their livelihoods andcultivate and grow the coffee that we love. But thethreat of deforestation exists from farmers who seek toexpand their arable land to increase production, while
selling the wood for cash. And as climate change leads
to rising temperatures, we see farmers moving tocolder, more elevated land to grow arabica coffees thatare less resistant to temperature differences.

In this section, we cover the upstream-related impact to nature and deforestation. The impact on nature and deforestation in our own operations can be found in the Minimising Footprint section of this report.

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In June 2023, the European Union introduced the EU
Deforestation Regulation (EUDR), as part of the Green
Deal, with full obligations applying from 30 December
2024. This requires companies to ensure that products
sold in, and exported from, the EU have not led todeforestation or forest degradation. We welcome theregulation, as it puts the protection of forests in thehands of those in control. While the coffee sector had
done little preparation ahead of the regulation's
introduction, as the industry was not considered aleading cause of deforestation, we have been ramping
up our deforestation approach to ensure the livelihoodsof smallholder coffee farmers are protected whilstdelivering on the EUDR promise by mapping thedeforestation risk of our supply chain, launching a
Forest Policy and increasing engagement.

RISK MAPPING
To mitigate and address deforestation, it is firstnecessary to accurately understand where the risk of
deforestation exists. This will enable us to target risk
mitigation activities to address deforestation risk. To
support us in this journey, Enveritas has developed
machine learning technology, to analyse high resolution
satellite imagery, coupled with ground truthing in orderto map forest as per the EUDR definition, and also
generate coffee plots geolocations and polygons. In
2023, Enveritas assessed 76,896 farms, training thesatellite software to differentiate between coffee andother commodities. This allowed us to map coffeerelated deforestation in the key sourcing regions, andwe will have the full JDE Peet's coffee sourcing areas

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mapped by mid-2024, ahead of the implementation of
the EUDR obligations.
This detailed mapping of coffee-related deforestation
risk will also allow us to target mitigation programmes atorigin with the ambition to eradicate coffee-related
deforestation.
Since coffee plants take several years to produce
berries, the quantity of coffee cultivated on deforested
land after the EUDR cut-off date of 31 December 2020
was extremely limited in 2023. Of all the countries thathave been mapped so far, constituting 89.3% of ourpurchased volume, Enveritas' ongoing risk mapping has
shown that 99.9% of the coffee-growing plots analysed
are free from deforestation. Our current engagementwith origin countries is focused on mitigating the risk
related to the <0.1% of deforested coffee plots so thatto transform them back into forest and ensure that all
coffee farmers can access the EU market while
mitigating the deforestation risk.
We are aware that the problem doesn't end there. Our
work and commitment to nature and deforestation free
will require a combination of high quality assessments
and continued interventions on the ground with at-risk
farmers to remediate the issue through support andtraining to address the root cause of deforestation thatis often poverty. This linked back with our farmer
initiatives and their key role in our overall Sustainability
journey.

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Deforestation-free coffee plots volume coverage

coffee doesn't yet deliver on the rigorous standards
required to ensure it is deforestation-free.

ENGAGEMENT
In 2023, we significantly stepped up our engagementwith the largest coffee producing countries, the coffeeindustry and regulators to help ensure the EUDR is a
success. Having taken a leading position as the leadingpure-play coffee & tea player, explaining the complexityof the coffee supply chain and the risks of excluding
smallholder coffee farmers is essential to drive a justtransition to net-zero.

ADDRESSING DEFORESTATION
To help the coffee sector remain deforestation-free, welaunched our Forest Policy alongside our Responsible
Coffee Sourcing Principles, which require our suppliers
to also be deforestation-free. By 2025, we aim, throughsupplier engagement, to ensure deforestation isprevented for the largest commodities we purchase,namely coffee and paper & pulp. Our continued annual
engagement with our suppliers through the SupplierSelf-Assessment Forms creates the basis forconversations on progress towards these targets.
For paper & pulp, we believe certification (FSC/PEFC) of
virgin materials is acceptable as deforestation-free.
Although recycled materials contribute to the circular
economy and are made from a renewable source, it is
not possible to trace back their origins. Hence, wereport our progress of 34.4% as deforestation-freebased only on the certified part of our virgin paper andpulp packaging. However, current certification for

In an effort to keep countries deforestation-free aheadof the EUDR cut-off date, we are continuing to invest in
programmes on the ground to perform forest restoration
before coffee is grown on deforested land. Farmers will
be supported to improve their livelihoods, whilst nature
can thrive.
For example, in the Bukit Barisan Selatan National Parkof South Sumatra, Indonesia, we are partnering with the
Wildlife Conservation Society to prevent future forest
deterioration and restore the ecological integrity of thearea and rehabilitate 2,500 hectares of degraded
forests. The area is home to unique species that areendangered and threatened, such as the Sumatranelephant, rhinoceros, and tiger, and the forest is underincreasing threat of degradation.

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Bukit Barisan Selatan Sustainable
Commodities Partnership (BBS KEKAL)COMMODITY: Coffee
TIME FRAME: 2023-2028
LOCATION: Bukit Barisan Selatan, Indonesia
SMALLHOLDER FARMERS REACHED: 3,559
PARTNERS: Wildlife Conservation Society

JDE Peet's is partnering with Wildlife Conservation Society, the community,
government and other coffee companies in BBS KEKAL (which means 'everlasting;).
BBS KEKAL is developing and trialling a model for 'forest positive' coffee, seeking to
improve the productivity, profitability, and resilience of coffee farmers, whilst enhancing
landscape sustainability, reducing conversion pressures and supporting restoration of
degraded areas.
Achievements include:• More than 3,500 farmers engaged, registered and farm plots mapped• 29 farmer groups with conservation commitments• Yield improvements up to 1.2 tons/hectare• 33,000 seedlings distributed and planted to support shade-grown coffee• Four women's groups supported to develop community businesses• Four new village regulations to support sustainable farming and conservation.

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Coffee sustainability: Preserving thenatural ecosystem with a focus onwater conservation
COMMODITY: Coffee
TIME FRAME: 2020-2024
LOCATION: Karnataka and Yemmigoondi, India
SMALLHOLDER FARMERS REACHED: 2,000
PARTNERS: Tata Coffee

This four-year project with Tata Coffee and the Central University of Kerala ispioneering water conservation by utilising winter irrigation for the production ofrobusta coffee, coupled with increasing pollination by establishing bee colonies that
also serve as additional sources of income for the community.
• Four irrigation tanks have been set up to irrigate 200 hectares of robusta coffee• 500 bee colonies installed in a 55 hectare area
The winter irrigation has improved plant conditions and extended growth of the cropbearing branches has been observed, which also improves the quality rating of thecoffee harvested. The project also reported the presence of other pollinators andspecies of bees critical to the coffee pollination process.

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Growing Together
COMMODITY: Coffee
TIME FRAME: 2022-2026
LOCATION: South of Minas, Brazil
SMALLHOLDER FARMERS & WORKERS
REACHED: 1,011
PARTNERS: Comexim

In the south of Minas Gerais, Brazil, the nexus between coffee farming, water production,and environmental conservation has become a tangible reality for approximately 600
farmers and their workforce. Despite a growing awareness among farmers about theimportance of environmental protection, the practice of releasing sewage directly into
water courses persists.
Recognising this challenge, JDE Peet's, in partnership with our local supplier Comexim, isinstalling 100 improved sewage treatment systems to support farmers in adopting moresustainable practices. Complementing this effort, we provide scholarships to students froma local university, who, under the guidance of their professor, actively engage with eachfarmer to craft personalised reforestation plans during on-site visits.
This hands-on approach ensures that the reforestation strategies are tailored to the specificneeds and conditions of each farmer. Furthermore, the project provides farmers with freeaccess to customised reforestation plans, along with seedlings and other essential inputs,
enabling them to kickstart the reforestation of their lands. This multifaceted project not only
addresses immediate environmental challenges but also fosters a sense of collaborationand empowerment within the local farming community.

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TEA: OUR RESPONSIBLE SOURCING
JOURNEY
APPROACH
Tea (Camelia sinensis) is produced in over 50 countries
worldwide by both smallholder farmers and larger tea
estates.
Although we source less than 1% of the world's tea, wetake our responsibilities extremely seriously.
Smallholder farmers and workers in tea communities,
our suppliers, and the tea estates with whom we havefostered long-term partnerships, are all valuablestakeholders in our supply chain. We know the best way
to achieve scale and impact is through collaborative
action and engagement in the sector, which we achieve
by working in partnership with tea growers, suppliers,
NGOs, local and national governments, and the wider
industry.

PROGRESS IN 2023
In 2023, we responsibly sourced 100% of the Camelia
sinensis and rooibos tea for Europe and New Zealandthrough Rainforest Alliance certification. Globally 40%
of all the Camelia sinensis and rooibos tea wepurchased globally was responsibly sourced, compared
to 27% in 2022.
We remain on course to deliver our goal towards 100%
responsibly sourced tea in 2025. We are in the second
year of our four-year, tailor-made Sustainable Supply
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Supplementary
informationin Turkey for our Ofçay brand.Our Camli tea processing
plant, along with the green leaf farmers, weresuccessfully audited against the Rainforest Alliance
Sustainable Agriculture Standard and are now certified.
While this is a major milestone towards our 2025
commitment, it is only one part of our sustainability
journey, which remains focused on environmental
conservation, social responsibility, and sustainablebusiness practices.
The goal of the programme in Turkey remains clear: toreach over 12,000 farmers in tea growing communities
and train them on sustainable practices, which will
benefit the farmers and their families for generations tocome.
In 2023, we completed a four-year Healthier Diets forEveryone in Tea Communities initiative, which was
implemented by the Global Alliance for Improved
Nutrition (GAIN) and Ethical Tea Partnership. Moredetails on the achievements of this project, which was
verified through an end-line assessment, can be foundin the section below.
As part of a Gender Equity initiative, in 2023, in Malawi
we partnered with Satemwa Tea Estate and Ufulu on a
programme to reduce period poverty amongst female
tea workers. Period poverty is defined as the inability toafford sanitary products due to financial circumstances
and afflicts over 56% of women in Malawi. Ufulu
worked across the Satemwa Tea Estate, holding 30
workshops during which 594 menstrual cups were
distributed to women and girls in the community.

We continue to be a member of the Ethical Tea
Partnership, sharing and learning with our peers andinvesting in collaborative programmes in our key
sourcing regions. By working together, we are better
equipped to tackle the deep-rooted issues and some of
the most complex challenges that tea workers andsmallholder farmers are facing. Some of these
programmes are discussed later in this chapter.

OUTLOOK
In 2024, we will publish our Responsible Tea Sourcing
Principles, which will form the foundation of our due
diligence approach for both social and economic
challenges and further strengthen supplier engagementin our tea sourcing journey.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Healthy Diets for Tea
Community
COMMODITY: Tea
TIME FRAME: 2020-2023
COUNTRIES: India, Malawi, Kenya
TOTAL PEOPLE REACHED: 734,075
PARTNERS: Global Alliance for Improved Nutrition(GAIN), Ethical Tea Partnership (ETP), tea companies, Tea
Association of Malawi, DharmaLife Foundation, Indian
Tea Association, Kenya Tea Development Authority

Poor diets are the leading cause of global ill
health, resulting in malnutrition anddeficiencies such as anaemia, decreased
energy levels, diminished health, anddecreased productivity. Tea workers andfarmers, predominantly women, often
contend with high rates of malnutrition due todiets lacking essential nutrients. Healthy Diets
for Tea Communities is a private-public
collaboration between the Global Alliance for
Improved Nutrition (GAIN), the Ethical Tea
Partnership (ETP), and eight tea companies.
JDE Peet's was proud to partner in this wide
reaching programme which aimed to promotehealthy diets in tea supply chains in India,
Malawi and Kenya.

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64

MALAWI
Reach: 147,780 people(29,556 smallholder farmers & estate workers directly and 118,224 household members indirectly)
Activities:• Improve lunches with fortified maize• Support crop diversification and kitchen gardens• Nutrition clubs to train farmers on good nutrition and sanitation• Create demand for nutritious foods through training, outreach, and cooking demonstrations

INDIA
Reach: 450,270 people(90,054 estate workers directly and 360,216 family & community members indirectly)
Activities:• 152 Healthy Line Shops - local shops sell nutritious food and hygiene products to tea workers andtheir families• 76 female Dharmalife Entrepreneurs go door-to-door, to raise awareness of the importance of goodnutrition and hygiene• Interactive activities (community street plays, cooking demonstrations, competitions) to enhancepeople's knowledge of healthy food and their food choices

KENYA
Reach: 136,025 people(27,205 farmers & workers directly and 108,820 household members indirectly)
Activities:• Interactive activities to improve people's food knowledge and choices• Target 10,000 farm workers and smallholder farmers to grow and consume more diverse crops in
kitchen gardens, distribute seeds for bio-fortified high-iron beans and vegetables, and orangefleshed sweet potato vines• Reinforce messages through radio and weekly SMS messages• Promote nutritious foods at the point of purchase: through kiosk owners"Our multi-year partnership with GAIN and ETP
has demonstrated the benefits of collaboration
as a sector, reaching hundreds of thousands ofpeople in tea communities in three countries reaching individuals who can benefit from
simple outreach and support. Building on thelearnings from this programme, JDE Peet's isproud to launch a four-year exclusive
partnership in South India (2023-2027) with
GAIN. We have fortified our commitment toglobal health and nutrition, fostering
sustainable impact and societal well-being, as
evidenced by the programme's outcomes."
Viral Sheth,
JDE Peet's Global Tea & Tisane Operations
Manager

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

PALM & COCONUT OIL
SMALLHOLDER EMPOWERMENTIntroduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Developing Models for Enabling
Sustainable Oil Palm Management by
Small Producers within the Sabah
Jurisdiction
COMMODITY: Palm Oil
TIME FRAME: 2020-2025
LOCATION: Sabah, Malaysia
SMALLHOLDER FARMERS REACHED: 2,500
PARTNERS: Wilmar, Wild Asia, IDH the
Sustainable Trade Initiative

Financialstatements

Supplementary
information

Coconut Alliance: Towards Sustainable
Coconut (Oil) Production at Scale
Supporting Sector Transformation in
the Philippines
COMMODITY: Coconut Oil
TIME FRAME: 2021-2025
LOCATION: Southern Mindanao & Southern
Leyte, Philippines
SMALLHOLDER FARMERS REACHED: 10,000
PARTNERS: GIZ, Cargill, Philippine Coconut
Authority, Agricultural Training Institute

PROGRESS IN 2023
In 2023, we continued to maintain 100% RSPO sourced
palm oil, which is well ahead of our 2025 target. In
addition to certification and strengthening our supplierengagement in our two main sourcing origins, Malaysia
and Indonesia, we also partner on the ground with our
suppliers, civil society and local governments.

This is a five-year project (2020-2025) to support the Sabah state
government’s 2025 target for the entire state to become certified
sustainable in its oil palm production. The challenge for the stateis how to ensure smallholders can implement sustainable
practices on the ground and improve agronomic practices, while
maintaining or improving livelihoods.

This four-year project focuses on smallholder farmers who grow andprocess coconuts.
• 10,000 farmers with higher agricultural income• Increased productivity in LandScale validated regions• Coconut oil from LandScale validated regions• Transparency in coconut supply chains

The project has four objectives:

The project supports and feeds into the Sustainable Coconut Charterand its collaborative platform, the Roundtable on Sustainable Coconut& Coconut Oil, to facilitate discussion and peer learning in the sector
and build structures beyond the project's lifetime.
Working together with government agencies, such as the Philippine
Coconut Authority and Agricultural Training Institute, ensuresachievements from the project can be scaled up for farmers in thewhole country and integrated on a broad political level.

•
•

•
•

Increase the economic return by organising smallholders andimproving oil palm management
Increase areas under sustainable land management andenhance biodiversity (low carbon, organic, soil improvement
methods and diversity of produce)
Reduce human rights risks
Identify and map smallholders through satellite mapping

65

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ANIMAL WELFARE:
ENGAGING WITH LOCAL SUPPLIERS
PROGRESS IN 2023
In March 2023, we updated our comprehensive Animal
Welfare Policy, which includes commitments to animal
welfare along our global supply chain, effective acrossour entire brand portfolio. The policy was originallypublished in 2022, in collaboration with the Lever
Foundation, a global NGO working to create a morehumane and sustainable protein supply chain.
While our business is fundamentally plant-based, it is
our responsibility to ensure that, where applicable,
products of animal origin are sourced from supplierscommitted to continually promoting better standards inquality, safety and animal welfare, respecting the Five
Freedoms for animals10, and to comply with theapplicable national standards on animal welfare and,
where legislation does not exist, the guidelines of theWorld Organization for Animal Health (OIE).

Introduction

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and outlook

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Financialstatements

As of 2023, while the Asia market is in its preliminary
days of awareness, our OldTown cafés have begun touse cage-free poultry in a range of products served atboth the café and manufacturing level, ahead of the2027 deadline. The seafood used at these cafés isalso certified by the Global Seafood Alliance for Best
Aquaculture Practices. The dairy milk utilised in
OldTown cafes is also HFAC (Humane Farm AnimalCare) certified.

OUTLOOK
Going forward, we will continue to work on cage-freehens, with 2024 being the target to market, and wewill work with local farms to build up volume andcapacity ahead of our 2027 target. However, ourcommitment towards animal welfare goes beyond
eggs, and also covers dairy, poultry, pork, fish, andbeef, along with commitments against animal cruelty
and testing. Our OldTown cafés have also introduced
the following plant-based alternatives to be more inline with our animal welfare policy: oat milk, plantbased popcorn chicken and patties, and plant-basedeggs.

Our most significant commitment concerns the direct
supply of eggs from cage-free hens by 2027. While thisrepresents a significant challenge for our food &beverage business in Asia, it presents an opportunity toestablish continuous improvement plans and actively
engage with our local suppliers to find time-bound andworkable solutions to improve the conditions of egglaying hens.
10

The Five Freedoms are: Freedom from hunger or thirst; Freedom from discomfort; Freedom from pain, injury or disease; Freedom to express (most) normal behaviour; Freedom from fear and distress.

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information

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BRAND HIGHLIGHT

COFFEE FOR COFFEE PEOPLE

100%
responsibly
sourced*Fastestgrowing national
premium coffee
brand

Peet’s Coffee, the beloved brandthat started the craft coffee
movement in the United States,
continues to set a high bar, with its
unwavering commitment to offering
the highest quality coffee and its
dedication to addressing
sustainability in coffee sourcing.
For Peet’s, 2023 was a year ofcontinued expansion across newgeographies and new audiences.
The year began with the first Peet’s
location opening in the Middle East,at The Dubai Mall, one of the UAE’s
premier shopping destinations. By
year end, Peet’s franchise partnershipwith Americana Restaurants had led
to the opening of 18 Peet’s coffeebars across the Gulf Coast Countries.

*per Enveritas standards

Back to brands overview è

In China, Peet’s coffee store footprint
grew from 125 stores to more than
200 in 2023. Closer to home, Peet’s
opened its first mobile order-to-go
concept store in downtown San
Francisco, and by the end of the year
had established nearly 200 new
Proudly Pouring accounts and fivenew licensed locations, including
premiere placement at Miami
International Airport.
Peet’s also entered the large andgrowing flavoured coffee segmentwith both seasonal and everyday
offerings. Despite economic
headwinds, Peet’s was the only
national premium brand to grow dollar
sales in 2023, while maintaining its
premium relative to the market leader.

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Introduction

Strategy andvalue creation

Performance review
and outlook

MINIMISING FOOTPRINTSUMMARY KPIs11
GHG emissions
Scope 1 & 2 emissions reduction
from a 2020 base year

Scope 3 emissions reduction
from a 2020 base year

21%

9%

Total electricity purchases (in MWh)

From renewable sources (in %)345,418

49%

Electricity

Packaging

11

Manufacturing waste

Water in manufacturing

Design 100% of our packaging
to be reusable, recyclable orcompostable

Maintain
waste to landfill
under 1%

Water intensity(cubic metres per tonneof production)

79%

1.1%

9.8

More information can be found in the Overview of our non-financial information tables and the Non-financial information section of this report.

Governance andrisk management

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information

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JDE Peet's N.V.
Annual Report 2023

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at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

By setting rigorous environmental and climate targets,
we are preparing our business against potential climate
and nature risks, cultivating resilience across ouroperations. Targets and action plans are embedded into
our routine business processes, and progress onactions and plans are reviewed quarterly (for more
information, see the Governance section later in thisreport). We have an understanding of the impact our
Scope 1, 2, and 3 emissions have on the climate, andwe have aligned this with our 'change levers', assummarised in the infographic on the following page.
Each manufacturing facility is deploying its own Scope
1 & 2 roadmap, and JDE Peet's central functions areleading over 20 strategic action themes for all parts ofthe business, from R&D to procurement, through tomarketing and sales. These are underpinned by acomprehensive strategic plan to deliver on our targets,aligned with the SBTi 1.5°C pathway that is currently
awaiting validation and taking into account the
projected growth of JDE Peet's.

TAKING PLANET ACTIONTARGETS & LEVERS

We have set a range of targets across our business tomitigate our impact on the climate, including emissions
reduction, cutting water usage, reducing waste, andincreasing material recyclability. While these targets
have an impact across our operations and along ourentire value chain, they are vital if we are to build abusiness that can achieve both a net-zero future andthat works in harmony with nature.

In line with the New Forestry Land and Agriculture(FLAG) guidance we committed to three new near-termtargets, which are validated by SBTi.
• A 43% reduction in absolute Scope 1 & 2 emissions
by 2030, from a 2020 base year
• A 30% reduction in absolute forest, land andagriculture (FLAG) emissions by 2030, from a 2020base year• A 25% reduction in absolute Scope 3 emissions by2030, from a 2020 base year (industrial non-FLAG).

12

For more information, see Assess, Address, Progress in the Responsible Sourcing section in this report.

PROGRESS IN 2023
Throughout 2023, we achieved a Scope 1 & 2 reductionof 21% and a Scope 3 reduction of 9%.
Our packaging commitments to make all our packaging
recyclable (re-useable or compostable) by 2030 islinked to our drive to increase circularity, which includes
reducing the amount of material we use, reusing moreof our materials, and extending our use of recycled69

content materials. All these elements also support our
1.5°C trajectory.
In 2023, we became a Science Based Target Network
corporate engagement partner. Through our
Responsible Sourcing Assess, Address, Progressapproach12, we already include nature-related impacts
in our risk reporting and in our project approach.
Because nature elements are already a key part of theholistic Global Coffee Platform's (GCP) Coffee
Sustainability Reference Code which underpins thereporting framework used by Enveritas, we are alreadyinvesting to mitigate our nature-related risks. This has
been invaluable in enabling us to complete our first
Taskforce for Nature-related Financial Disclosure(TNFD) assessment and link our impacts into anassessment of our approach on setting targets fornature, which we will consider in the coming years.

JDE Peet's N.V.
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Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

SCOPE 1SCOPE 3In terms of climate, and guided by our Marginal
Abatement Cost-Curve (MACC)13 assessment, our
Scope 1 levers are focused on energy reduction anddecarbonisation across our facilities. Investments inproven technologies and in R&D underscore ourcommitment to a net-zero future. We continue to invest
in decarbonising our fuel usage, and in 2023 one of ourroasteries was converted to biofuel use. We also began
investing in converting one of our instant facilities to use
100% biomass waste, which will be operational no later
than 2025.

Scope 3 impacts have a number of levers. Because ourcoffee value chain accounts for 48% of our Scope 3
footprint, an essential aspect of our Minimising
Footprint pillar is to continue investing in responsible
sourcing farmer projects to promote sustainableagricultural practices and reduce emissions from green
coffee production.

JDE Peet's Capital Expenditure process integrates
financial and non-financial metrics to ensure reducing
climate impact is an informed part of normal businessdecisions.

SCOPE 2
Our Scope 2 levers are focused on continuing to use
renewable sources, where appropriate. For example,
our facility in Bulgaria recently adopted solar panels onsite as we continue to assess the suitability of all ourassets to have on-site generation. Our Scope 2
roadmaps also call for the phasing out of coal from ourthird-party heat providers by 2030. We source over
22% of our total energy from renewable sources, which
includes 49% renewable electricity. We use renewableelectricity in a balanced way as part of delivering on our
reduction commitments, along with investments in more
direct energy reduction and decarbonisation.
13

70

Supplementary
information

Our combined investments across capex/opex
cumulatively to 2030 is shown in our TNFD / TCFD
assessment and are estimated at EUR 850 million(covering the Responsible Sourcing and Minimising
Footprint pillars) these costs are integrated into ourbudgets. Including associated savings on some of theseinvestments, this equates to a marginal abatement
carbon price estimate of EUR 62 per tonne. Within our
strategic climate transition roadmap, the table below
shows the status of our major climate projects at yearend 2023.
Numberofinitiatives
14

Total estimated annual
CO2e savings in metrictonnes CO2e
650,000

To be
implemented

4

94,000

Implementationcommenced

3

48,000

Implemented

6

20,000Under
investigation

A Marginal Abatement Cost-Curve (MACC) assessment is a tool used to evaluate the costs associated with reducing greenhouse gas emissions. The purpose is to provide a graphical representation of the costs of different abatement measures, showing how much it costs to reduce one additional unit of pollution
for each available option.

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JDE Peet’s
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Scope 3 - Policies14
Our Responsible Coffee Sourcing Principles outlines
how we will invest in our value chain, supporting,among other projects, the building of climate resilience
into our farmer value chain, which uses regenerative
agriculture levers and agroforestry levers to reduce theimpact of green coffee.
In 2023, we released our Forest Policy and Nutrition
Policy, and brought into effect our Water Stewardship
Policy. Our Forest Policy sets out a clear pathway for us
to reduce the impact of historical deforestation (landuse change). The Nutrition Policy focuses on delivering
the same consumer experiences with reduced sugar
and saturated fats, supporting the reduction of raw
materials in our portfolio. This both pushes down theenvironmental impact and footprint associated with raw
materials, and enables us to adhere to nutrition targets.
Similarly, our packaging commitments involve us
looking for new product innovations, focusing on
optimising pack designs to reduce material use, reusingmaterials where possible, or making all our packaging
recyclable.
Our commitment to design 100% of our packaging
components with recyclable materials by 2030 ensures
all our materials will have a future value in a circular
economy, and will no longer be seen as waste, enabling
us to realise our ambition of being packaging-waste
free. While we already use significant volumes ofrecycled materials, we are looking into extending thiswhere commercially appropriate.
14

All policies are available at www.jdepeets.com.

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Supplementary
information

Additionally, we developed our Water Stewardship
Policy, applicable to direct manufacturing operations inline with UN SDG Guidance and the UN Global
Compact Water Resilience Coalition documentation, toeffectively manage water-related risk in the areas ofwater availability, water quality, and water access. We
seek to reduce our water intensity (m3 per tonne ofproduct produced) across our manufacturing operations
by 18% by 2030 versus a 2020 baseline, and aim toadjust this target into one in absolute terms. Water use
and energy use are often strongly linked.
Scope 3 - Suppliers
We are also engaging with our supplier base, setting
expectations for them to align with a 1.5°C scenario anda net-zero future. In 2023, we worked directly with our
top suppliers, covering 44% of our raw and packaging
footprint, and all now have 1.5°C pathway commitments
in place. We continue to roll this out to our broader
supplier base, and are investing in the tools to track
supplier data and delivery against their commitments.
This part of our broader sustainability approach tosuppliers includes onboarding our suppliers on the
Sedex platform, to identify and manage the risk in ourvalue chain, with a vision to de-risk our overall value
chain.
Scope 3 - Embedding in decision-making
It is essential that we provide information that enables
climate-related impacts to be considered as part of all
our business decisions and part of our customer
relationships. We have the tools in place to provide

each customer with specific emission and packaging
data related to their entire product portfolio, helping tosupport decisions taken on portfolios and sharedpromotion strategies. We are also developing tools sothat we can have similar interactions with our vendors.
Climate and packaging material efficiency are included
in our investment decision processes, our innovation
decision processes, and in our routine internal businessperformance reporting.

PLANET STRATEGY - 5 THEMES
While there are multiple interdependencies, our
Minimising Footprint pillar operates within five key
themes (outlined below) that are linked to our Transition
and Physical risk (Climate and Nature), underpinned byempowering our teams to make informed decisions.
More information can be found below and in the
Climate and nature-related risks and opportunities
section and Risk management section of this report.

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JDE Peet’s
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FARMER RESILIENCE
Green coffee is our key commodity, and our businessexistence depends on being able to source green coffee
today, tomorrow, and into the future. This is why theestimated 12.5 million smallholder farmers that supply
the world’s coffee sit at the heart of our need to takeclimate action. At the same time, green coffee makes
up half of our Scope 3 emissions. Over the long-term,coffee farms risk being impacted by changing weather
patterns linked to climate change, such as volatilerainfall patterns, rising temperatures, and an increased
risk of new pests and diseases, which together threaten
the productivity and yield of farms and the global coffee
supply.
Building farmer resilience is therefore key to not only
our Responsible Sourcing approach, but is also a
cornerstone of our Minimising Footprint approach. This
includes working with partners, civil society andgovernments on coffee farmer projects focusing on
reducing fertiliser needs, increasing yields, andimproving coffee plant resilience. These are linked to
improving and protecting soil health and, whereappropriate, using agroforestry to support ecosystemservices for farmers, and help manage futuretemperature changes.
Together, these also help improve the efficiency ofgreen coffee production and, ultimately, help reduce ourenvironmental footprint. Climate-resilient farming also
reduces the need for farmers to encroach onto newland when existing plots decline in productivity,
15

Introduction

Strategy andvalue creation

Performance review
and outlook

reducing the risk of future deforestation. A number ofour programmes also support targeted irrigation
practices where there is water scarcity, further helping
to reduce farm footprints. When the new GHG Protocol
land sector guidance is published and the techniques
for measuring agroforestry carbon stock are proven,
JDE Peet's expects these to form part of the delivery of
its targets.
Collective action is critical to supporting the sector andwe take an active role by investing time and funding to
set up and participate in pre-competitive consortia andtrade bodies, such as the Global Coffee Platform (GCP)
and the Sustainable Coffee Challenge.
Over the longer term, we expect developments in new
coffee varieties and techniques, supported by ourinvestment in World Coffee Research (WCR) andvarious start-ups, to provide better outcomes forfarmers. We are also actively involved in consortia andare including work on biochar15 in our projects, which
has the potential to almost permanently retain the
carbon from the coffee wastes from farming, while atthe same time reducing fertiliser application levels. We
believe that coffee is well-placed to be a commoditythat can be grown well in a net-zero future.
We continue to connect with our farmers, investing inthem to align practices with the GCP Coffee
Sustainability Reference Code. This supports farmers'
ability to increase outcomes, and helps proliferate bestpractices that will reduce their environmental footprint.
Our Responsible Sourcing targets and our Assess,

Biochar is a lightweight black residue, made of carbon and ashes, which remains after the pyrolysis of biomass, and is a form of charcoal.

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72

Address, Progress approach aligns our farmer
investments in a data-led approach, directly supporting
our farmers to build climate resilience. More informationon this initiative can be found in the Responsible
Sourcing section of this report.

PACKAGING AND MATERIAL EFFICIENCY
Our packaging sustainability vision is a waste-freeworld. We recognise packaging waste as anenvironmental issue, and in tandem with current andupcoming regulations, including the EU's goal to makeall packaging recyclable by 2030, we are working toenable circularity across the value chain while
minimising the environmental footprint of our
packaging. We are doing this through design choices,helping reduce material use, promoting reuse, recycling,
composting, and increasing the use of recycled content.
To drive our packaging agenda, we have createdinternal packaging sustainability design guidelines andprincipals based on a consolidation of industry-leading,material-specific guidelines. In light of the rapidly
evolving external landscape of design requirements, we
review these internal design guidelines twice a year.
We continue to engage with suppliers who aredeveloping new materials across multiple FMCG
businesses. There is a clear plan in place to convert
products to new materials in a phased approach. This
includes investing in new lines to accept materialchanges and optimising portfolios, while maintaining
product safety and quality.

We actively participate with trade bodies to press forstandardised approaches on material definitions. For
example, we align with CEFLEX (Circular Economy for
Flexible Packaging) requirements for laminates, andtarget mono-materials in all other packaging systems.
We are also active in cross-sector collaboration,
including pilot projects and the deployment of solutions
for small aluminium and plastic recycling, as thesevaluable materials are often missed in waste
management systems.
In 2023, we worked pre-competitively with theEuropean Coffee Federation to show that the footprintsof single-serve systems all fall within similar ranges, andare also similar to other non-single-serve coffee
preparation methods.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glanceThis highlights that freedom of material and consumer
choice should remain, now that these products will fallwithin the EU packaging waste regulations as
packaging that will be made recyclable or compostable.
Driving packaging efficiency is also linked to resource
efficiency within our own manufacturing facilities, andby year end >98.9% of our waste streams wererecycled, composted or incinerated with energy
recovery. We will continue working across our
manufacturing locations to reduce our total waste,whilst maintaining our waste to landfill below 1%. In
2024, we aim to enhance our drive towards circularity
by setting recycling targets for the waste that is
generated.

ENERGY EFFICIENCY
Along with material efficiency, we have clear roadmaps
to manage our energy footprint through a blend of
progressive increases in the use of renewable energy
and investments in energy reduction. Our investment
programme ensures we invest in the technology
choices that maintain and strengthen the resilience andcompetitiveness of our business. Our primary focus is
to operate our manufacturing facilities efficiently and to
reduce fossil fuel use.
We have a roadmap in place to define future options to
reduce impacts, including a balance of available
technologies and R&D investments. We also want tohelp create future business resilience by ensuring thatkey suppliers within our supply chain have similar
Science Based Targets’ ambitions.

Introduction

Strategy andvalue creation

Performance review
and outlook

WATER EFFICIENCYFreshwater is the lifeblood of our planet, yet the UN
expects that the world may face a 40% water shortfall
by 2030. Currently, up to 80% of water discharged
across the globe is not adequately treated and 1 out of
4 people lack adequate infrastructure to access water.
Climate change is further accelerating the need to act toensure water availability, quality and access along ourentire value chain, from the farmer to our operations
and, ultimately, the consumer.
As a pure-play coffee & tea company, we are lessexposed to water risks than other beverage companies,
due to the nature of our products. Coffee is grown inorigins that are 96% rain-fed, while more than 90% of
the water used in our operations is to produce instantcoffee. Water is added during coffee preparation by the
consumer, while our operations mostly deliver dry
products.

Governance andrisk management

Financialstatements

please refer to managing our water use section of thisreport.
Our goals, targets, and commitments outlined in ourpolicy relate to public policy and the local context ofeach area with water stress, as our focus on operations
with high water use and high water stress requiresconsideration of local context and close collaboration
with local stakeholders. To reach the targets linked tothis ambition, we need to commit to leveraging a
combination of investments in our own direct
operations and to continue to collaborate, throughcollective action partnerships and initiatives within
basins, with relevant stakeholders from the industry,
governments, and NGOs. This will enable us to build
capacity and promote water security, while aligning withinternational frameworks, standards, and widely
recognised water initiatives.

ENGAGEMENT
We are committed to ensuring water security now andin the future. Recognising water as a fundamental
human right and its critical importance for food andagricultural businesses, we aim to minimise our impact
and effectively manage water resources amidst
increasing water stress and the effects of climatechange. As part of our updated double materiality
assessment, water & wastewater management has
become a material topic at JDE Peet’s. In the value
chain, only our own operations have been considered
due to the materiality and sphere of influence of thecompany. For more information on how we are
addressing water use in our upstream value chain,73

Supplementary
information

Empowering our people to make informed decisions is
an important part of minimising our footprint, and wecontinue to invest to deliver both data and training,where needed. In 2023, we rolled out carbon data on all
our products to the business teams, and included thatdata in routine business reporting, including planning.
This enables the teams to now work with customers on
our shared need to build resilience. This is a key
example of our approach to embed the concept ofminimising our footprint into routine business decision
processes and into our continuous improvement of
those processes across all areas.

We also continue to act pre-competitively in areas that
support coffee, and with it seek to drive systemicchange. We have seen the progress that can be madethrough the completion of our collaboration with USAID,
Nestlé, Lavazza and Costa, and more than 10 trading
partners to set a baseline for green coffee in Vietnam
and Indonesia, and this will now expand to drive similar
work in South and Central America, with seven roasters
on board. Systemic change can happen at multiple
levels and we work collaboratively to share information
with governments, while also building new businessmodels at local levels.
JDE emissions per coffee cup*

BRAND HIGHLIGHTSENSEO®, THE ENTRY SINGLE-SERVE SYSTEM,AFFORDABLE AND SUSTAINABLE!

#1

Amongst singleserve in France,
Germany, theNetherlands,
Belgium

38M
cups served
every day***In 2001, SENSEO® revolutionised
the world of coffee with affordable,delicious coffee with rich crema, at
the touch of a button.
It is the #1 single-serve system*
where it is present: #1 in users,with 15 million households, #1 in cups,with 38 million cups served every day,and #1 as the most well-known brand.
When it comes to sustainability,
SENSEO® is ahead of the game,delivering single-serve cups with aslittle packaging as roast and groundcoffee, thanks to its compostable**pads in recycle-ready bags.
Despite this success, SENSEO®
did not stand still! In 2023, SENSEO®
stepped up in versatility, upgrading its
milk-based offer both on taste and on
nutritional values, and launching a
successful Café au Lait. And while

Amongst single-serve in France, Germany, the Netherlands, and Belgium
According to [NEN (EN, FE EN) -13432 biodegradable and industriallycompostable

Back to brands overview è

SENSEO® continues to offer
consumers in Western Europe
ever-expanding formats – now up
to 120 pads – it also continues its
promising geographical expansionin Hungary, Romania and Bulgaria.
SENSEO®, each cup matters!

JDE Peet's N.V.
Annual Report 2023

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at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

75

WORKING TOWARDS SUSTAINABLE PACKAGING AND REDUCED WASTE
needs to be supported through investments inresources and equipment (see our TCFD analysis), as
well as the data needed to make the right choices at
each stage.

PACKAGING AND MATERIAL EFFICIENCYPACKAGING
Progress in 2023
Delivering on our commitment to work towards apackaging waste-free, circular-material future, means
focusing on reducing our pack intensity and using
100% recyclable materials. This takes significant
innovation and collaboration internally across all

business functions, and externally with our network ofsuppliers, while ensuring we continue to delight andprotect our consumers.
We made good progress on our publicly disclosed
commitments in 2023, and have a clear roadmap inplace in terms of pack reduction, circular packaging,and product innovation. We know that this roadmap

Pack reductions
In 2023, we launched an internal Global
Packaging Consumption tool, which provides
daily updates on packaging volumes sold and quantifies
all our KPIs per material type. This includes packintensity reporting, including weight of packaging
material (in grams) per cup sold, recycling content, andrecyclability reporting for all products in our portfolio.
This helps business teams review promotional strategies
with customers and focus on our shared reduction
targets. It also enables individual business units to use acommon standard to report on performance, understandthe likely impact of Extended Producer Responsibility
tax on their material choices, and means pack intensity
metrics can be included in innovation decision
processes. Since 2020, our pack intensity per cup ofcoffee sold has averaged 2.07 g/cup. We expect thebenefits of this to be apparent in the coming years' datawith more active controls in place.
Fully circular packaging
Alongside the sustainability checks we haveincorporated into our innovation processes,
we also continue to identify and work towards solutions
for packaging waste that is recyclable but can berejected at sorting or reprocessing centres due tovarious technological constraints. In 2023, we further
invested in capsule recycling through the Koffie Capsule
Recycling scheme in the Netherlands with 90% of themarket represented, while working on a combination of
dedicated and public collection systems such as theacceptance of coffee capsules in the blue PMD bin in
Belgium. Additionally, we actively engaged with various
consortia to stimulate essential changes to design
guidance, sorting practices, and investment in goodquality end-of-life solutions that prevent waste
generation. We are also actively engaged in a range of
trade and industry associations to foster industry-widealignment on material topics relating to waste andpackaging circularity.
One example of where we want to eliminate waste andstimulate the use of renewable resources is our ongoing
effort to launch the first recyclable flexible paper
packaging for the pure instant category. This format will
replace existing flexible plastic laminates that are notrecyclable and also carry higher carbon-equivalentemissions per kg of material.
In 2023, we delivered on our roadmap to make all
Senseo outer packs from recyclable materials. The
Senseo brand is unique in offering both compostablepads and all packaging related to its standard offerings
recyclable. We also began testing for the next phase ofrecyclable material roll outs, and realised successfulcommercial tests at scale at a number of locations andfor a number of product types.

JDE Peet's N.V.
Annual Report 2023

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at a glance

Additionally, we ran pilot trials of new higher recycledcontent materials, and new mono-materials, on anumber of products. These are expected to come tomarket in a number of years, in line with our roadmap.
Reporting and increasing recycled content in our paper& pulp materials also supports our new Forest Policy,
linked to managing and mitigating deforestation in thepaper & pulp value stream.
Changes require cross-functional teamwork and thesharing of best practices, which often unlock benefits
beyond the immediate targets. For example, 2023 was
the first full year where all our tea bags included
industrially compostable materials, which alsosignificantly improved associated line performanceversus historical standards. This was due to our workon optimising material performance. By year end, 79%of our material portfolio was recyclable and 35% of ourmaterial portfolio came from recycled sources.
Product innovation
To manage the EU's Directive on single-use
packaging, in 2023 we launched an innovative
lid across our ready-to-drink coffee portfolio (see theCase Study for more information).

16

Introduction

Strategy andvalue creation

Performance review
and outlook

To facilitate future innovation, during the year wecreated a Packaging Design guide, which uses leadingindustry standards, such as RecyClass, CEFLEX, CEPI
(4evergreen), EuPIA, and expertise derived from visits tofacilities for specific material reprocessing streams.
From this, we identified five key principles:
1. Sell more cups of coffee & tea with less packaging
2. Design for material purity, wherever possible
3. Design for sorting effectiveness, taking into accountthe current capabilities of sorting facilities
4. Regenerative versus fossil-based materials
5. Collaborate to innovate along the value chain.
Through the internal design guidelines, we have also
implemented sustainability checks within our innovation
management process, including difficulties related to
end-of-life, packaging material minimisation, recycledcontent integration, carbon emissions, and, in the near
future, extended producer responsibility/tax
implications. These checks also consider the wastehierarchy such that reuse, recyclability, andcompostability are required for all new packaging
launches and adaptations. Our Scope 3 targets are
directly aligned to level 1 of the waste hierarchy, while
our reuse, recycle, compost (RRC) commitments arealigned to levels 3 and 416.

The European waste hierarchy refers to 5 steps, namely: 1. Prevention; 2. Reuse and preparation for reuse; 3. Recycle; 4. Recovery; 5. Disposal.

Governance andrisk management

Financialstatements

Supplementary
information

Outlook
Product innovation
In 2024, we will enhance the sustainability
checks of our innovation management
process with additional checks on adherence to ourinternal packaging design guidelines. We will also
launch the first paper-based instant coffee refill pack.
This unique product will support the Kenco brand while
enabling consumers to further recycle their waste. At
the same time, this will reduce our pack intensity andincrease the level of recyclable materials in our portfolio.
To enhance our reporting capabilities, we seek to begin
reporting on a product level.

76

Fully circular packaging
To address the gap in our RRC progress, wewill sequentially roll out new projects to reach
100% in 2030. We will continue our phased
approach to material changes in our portfolio, with 2024
seeing a number of our existing metal-foiled packs
moving to both simpler and recyclable materials. This
will be the first wave of material changes across ourroast & ground portfolio, underpinning both our move torecyclable materials and our drive to reduce the impactof these packs. At the same time, we will continue our
R&D work on preparing for future roll outs of both newmaterials and materials with higher recycled content.

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Annual Report 2023

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at a glance

WASTE IN OUR OWN OPERATIONSProgress in 2023
Following the waste hierarchy, our focus will always beon preventing total waste, whilst minimising our waste
for disposal. However, many areas in the world still
send too much waste to landfill, often because local
recycling and incineration infrastructure is unavailable.
Being a global company, we reviewed our zero wasteto-landfill target for each manufacturing site to see how
our associates could make the greatest impact.
Waste reduction is part of our determined effort toembed a zero-waste culture within our business. Ourcontinuous efforts since 2020, have already reduced our
total waste by 37% and waste to landfill by 58%. We
will continue our journey and halve our total waste by2030 (baseline: 2020) and maintain waste-to-landfill
under 1%, with a zero waste-to-landfill goal by 2050.

Introduction

Strategy andvalue creation

Performance review
and outlook

During the year, we also began reviewing waste KPIs ona daily to weekly basis to analyse trends and set up
corrective actions where necessary. We set up monthly
reports with our principal waste contractors, with theinclusion of waste volumes, final destination, price, andcosts of purchase. Additionally, waste suppliers are
helping us to identify better reuse and recycling
streams.

Governance andrisk management

Financialstatements

Supplementary
information

operates a mobile app that connects customers torestaurants and stores that have surplus unsold food.
This is being used at more than 190 Peet's andStumptown coffee bars in the United States, and in
2023 we sold more than 62,620 surprise bags throughthe app, saving more than 250,500 pastries from goingto waste.

Outlook
Since May 2023, all coffee waste from our Andrézieux
plant in France is being sent for anaerobic digestion to
produce biogas. This biogas is reintroduced into the city
gas network. The production of green gas producedwith our coffee waste is estimated to be equivalent to
1% of our on-site consumption.
To scale best practices, in 2023 we developed an ebook detailing various waste reduction and reuse
initiatives, encapsulating our commitment tosustainability. Additionally, we introduced the innovative
Green Office concept, which encourages
environmentally conscious practices in the workplace.
On a global scale, the Global Sustainability team sharedbest practices from successful implementations in
Utrecht in the Netherlands and in France. Their insights,
presented through a shared video, inspired teams
across the regions. We also initiated monthly calls with
Health, Safety and Environmental experts from acrossthe company to amplify awareness and engagement.
Following a successful two-year programme, our Peet’s
segment now partners with Too Good to Go, which

Looking ahead, our focus will remain on reducing total
waste and waste for disposal, with the following specificobjectives:• Deliver against our commitments to halve our total
waste by 2030 (baseline 2020) and maintain wasteto-landfill below 1%, with a zero waste-to-landfill
goal by 2050.
• Monitoring the aftermath of incidents – such as thefire that took place at one of our plants in Germany –to assess their potential impact on our waste
reduction targets.
• Further roll-out the Green Office concept across ourworkplace to spread the zero-waste mindset
It is expected that our waste will decline in the future as
we divert more of our spent grounds to our biomass
burners. Our Operations, R&D and Procurement teams
will continue to look for innovative solutions to cut our
total waste.
A heightened emphasis on recycling initiatives is on thehorizon, with a targeted commitment to increasing
recycled waste.

77

Waste will continue to be a part of our overall
Management Operations System (MOS) approach to
managing environmental topics, and we will include
them in normal business decision processes.

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Annual Report 2023

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Introduction

Strategy andvalue creation

Performance review
and outlook

Packagingredesign
to reduce
use ofthe
virginplastics
Packagingredesign
tothe
reduceuse
of 17

virgin plastics

At Peet’s, a similar initiative to reduce virginplastic was achieved on a high volume
format: the K-Cup® pod. The plastic
contents of the cup & disc inside of thecapsule were redesigned to decrease theplastic used per Peet’s K-Cup® pod byapproximately 36%.

17

Financialstatements

78

Supplementary
information

Paper refill pack - Soluble coffees
Another example of where wedeploy reduction strategies, aswell as pivot to renewable &recyclable materials, is thedevelopment of a first-of-its-kindpaper pack for soluble coffees.

Preventing or reducing packaging material
sits at the top of our waste hierarchy, andconstitutes the most effective way to deliveron our packaging commitments. In 2023, we
implemented two projects to reduce the useof virgin plastics across the company.
At Douwe Egberts, we redesigned thebrand's Ready-To-Drink cup, launched into
the market in January. The new design
reduced the use of virgin plastic byapproximately 44% compared to theprevious version, and made the cup
recyclable. This resulted in the avoidance of
49 metric tonnes of virgin plastic, andreduced our emissions by ~156 mt/CO2eq.

Governance andrisk management

The result is an avoidance of 275 metrictonnes of plastic in 2023 versus 2022,
equating to approximately 595 mt/CO2eq.
In both cases, the packaging designchanges were executed withoutcompromising on product quality, theconsumer experience or volume fill weight.
Additionally, we avoided changes to UPC or
EAN codes, reducing the cost of executingchanges and preventing disruptions to
supply and trade obligations.
In total, these two initiatives helped us makevirgin plastic savings of 431 metric tonnes,
equivalent to around 287 mid-sized cars.17

With the assumption that an average mid-sized car weighs 1.5 metric tonnes.

The new paper refill packaging design will completely displace
plastic alternatives in available markets and provide an end-oflife solution for the packaging waste. This offers consumers
alternative packaging formats that promote recyclability &reusability at lower carbon-equivalent emissions.
The paper pack innovation will enter the market in 2024.

97%

less

packaging thanalternative glass jars

71%

less

CO2e emissions
compared to 150gr
plastic refill pack

98%

less

CO2e emissions
compared to 200gr
glass jars

JDE Peet's N.V.
Annual Report 2023

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at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

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information

79

ENERGY EFFICIENCY
stakeholders, such as industry partners, equipment
suppliers, governmental authorities, and local
communities.
We operate with 3 key levers:• Energy efficiency: reducing our energy use• Renewable fuels: decarbonising direct energy• Renewable electricity: decarbonising indirectenergy.

MANUFACTURING
PROGRESS IN 2023
Cutting energy use in our 42 manufacturing locations
helps us reduce costs and our environmental impact,with energy reduction a key factor in lowering our
Scope 1 & 2 GHG emissions. On a societal level, cutting
our energy consumption reduces stress on energy
providers and grid infrastructure.

Driving energy reduction is a structured process ofcontinuous improvement, sharing best practices
between teams, and building long-term roadmaps thatlay down our journey ahead. Part of this journey
involves developing new processes, which need to betested before being rolled out across the network.
Effective and efficient implementation requires close
collaboration both internally and with external

Energy efficiencies
During 2023, we invested in the ongoing rollout of best practice heat recovery systems
across our manufacturing sites, and tested newprocesses at scale to support our network roadmaps.
We also leveraged support in the EU through Green
Deal government grants, including a new heat recovery
unit in our factory in Valasske, Czech Republic.
Recovered heat is used for heating purposes, reducing
overall gas consumption. We are assessing thefeasibility of similar heat recovery units in other roasting
facilities.
We also saw excellent continuous improvement in
reducing gas consumption through smarter equipment
operations and maintenance. Examples include ourfactory in Andrézieux, in France, where throughoperational improvement, we reduced consumption ofnatural gas by up to 10%. In Berlin, our roadmap
investments were fully operational and this, combinedwith the team's optimisation work, has led to a 30%
drop in gas use per pack of finished coffee since 2020.
In collaboration with R&D and our Engineering teams,
we are testing and commercialising new processes tosupport the reduction of energy and emissions in the
future. This includes new membrane concentration
systems and high-temperature heat recovery systems
for applications across our instant sites. These
investments will not only deliver improvements in 2023,
but also confirm their potential inclusion for other site
roadmaps, where appropriate. We are also partneringwith equipment suppliers to pilot new technologies toreduce energy and GHG emissions.
Renewable fuels
In 2023, through changes in our operating
portfolio, we increased our overall use ofrenewable fuels slightly to 19%. Our site in Gaevle,
Sweden, continues to source all its energy fromrenewable sources and has seen a reduction in its
carbon footprint of over 90% since the 2020 base year,
demonstrating that a net-zero compliant future ispossible for coffee.
Renewable electricity
By year end, 49% of the electricity wepurchased came from renewable sources. We
also contract market-based low-carbon electricity tariffs
where appropriate and available.

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at a glance

During the year, we continued making progressive
investments in local self-generation of electricity using
solar panels, installing units in Bulgaria and gaining
approval for an installation at our Greek sites for 2024.
These changes will further increase the amount of our
total self-generated energy.

OUTLOOK
Each manufacturing facility has a roadmap for energy
and environmental footprint reduction, while ourinvestment programme carefully evaluates emerging
regulations and ensures we invest in the technology
choices that maintain and strengthen the resilience andcompetitiveness of our business by embedding ROIfrom a GHG emissions and water intensity perspective
in our investment process. We will continue to assess
Scope 1 & 2 reduction investments with a longer
payback period than our normal business investment
terms.
Renewable fuels
In 2022, we took a major investment decision
to convert our Malaysian instant site to burnrenewable biomass to generate steam. The renewablebiomass will come from the on-site production of
instant coffee, and from other local renewableagricultural biomass waste. As well as cutting energy
costs, this will lead to significant Scope 1 reductions forthe network, and also support our waste reduction
targets. We expect the new unit to be operational nolater than 2025.

Introduction

Strategy andvalue creation

Performance review
and outlook

We will also build on the learnings from our Gaevle
facility in Sweden, and move one other site to > 90%
Scope 1 & 2 reduction versus the base year, throughthe use of renewable fuels.
Renewable electricity
We also plan to update our review of the longterm potential of a possible Power Purchase
Agreement on renewable electricity for Europe, andcontinue the roll out of our own on-site self-generationof renewable electricity.
Energy efficiencies
We will continue to invest in a number ofenergy- and emissions-reduction programmes
over the mid- to long-term, through equipment trials
and R&D development work, following through on ourroadmap to build energy resilience into ourmanufacturing processes. Additionally, we will further
develop net-zero factory designs and technologies,
through ongoing capability building and a culture shift in
the organisation.

SUPPLIERSPROGRESS IN 2023
Excluding the impact from green coffee & tea, 23% of
our Scope 3 GHG emissions comes from our packaging
and raw material suppliers, highlighting the significant
dependency of this value chain on energy. We haveworked closely with this supplier group to build theirresilience, which will ultimately support JDE Peet's'
resilience.

Governance andrisk management

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information

Supplier collaboration
44% of our raw and pack material footprint is
now covered by suppliers signed up to
Science Based Targets and focussed on delivering on
our aligned 1.5°C reduction pathway. We have alsoreached out to the next top 50 suppliers to begin setting
expectations of both a reduction of impact andimproved data quality directly linked to the products
these suppliers provide. As well as improving reporting,this will also form the backbone of our new vendor
rating system which will link multiple supplier data
sources together to build on our long-term strategic
relationship with these suppliers.
While we directly support our suppliers onunderstanding the SBTi journey, when they feel unable
to commit, we will, where necessary, also look foralternative suppliers who are prepared to commit andsupport us on our shared journey.

OUTLOOKAs we build from our core strategic suppliers, and set
clear expectations with all our suppliers on reporting
and target setting, we will use the CDP supplierengagement programme to extend our reach to afurther 500 of our top suppliers.
Beyond that, we have embedded environmental criteria
in supplier selection across our cost of goods supplierbase, linking also to our common approach on
responsible sourcing topics, such as no deforestation.
This will include developing clear expectations for othersmaller volume commodities. We will continue to80

improve and update the environmental and responsible
sourcing criteria and we will integrate them in our new
vendor rating system.

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JDE Peet’s
at a glance

ENGAGEMENT
INTERNAL
PROGRESS IN 2023
Reducing energy and water use is a company-wide
responsibility, and we undertook a number of initiatives
to better engage with our employees to help achievethis. We believe that small behavioural changes by our
employees in the office can help reduce our climate
impact.

Introduction

Strategy andvalue creation

Performance review
and outlook

Portfolio optimisation
Empowering all employees to include
sustainability within normal business decisions
and processes is a key part of our engagement
process. During the year, we continued to use reporting
tools that allow business units to report the impact of
their portfolio, in emissions and pack material designed
for business performance reporting, alongside financial
performance reporting. These tools will also allow
business units to share data during reviews with ourtrade partners and champion data-driven decisions.

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information

Route optimisation
The logistics teams have led the way withembedded data, with all inbound andoutbound logistics footprints and costs dash-boarded.
In 2023, we hit over 100 shipments per week sent
through more environmentally friendly intermodal (truck/train) transport lanes. In the Czech Republic, we moved
parcel delivery to a new provider, with a fleet composedof 80% electric vehicles. By year-end 2023, the logistics
teams had reduced the company's logistics emissions
by 12% compared to 2020.
Rolling out these tools has also enabled many users tointeract with environmental topics. Consequently, we
have included training on sustainability and how we use
these tools and targets to manage the businessresilience of not only JDE Peet's, but also our customers
and our partners along the value chain. We have also
expanded the range of training tools available within ourcentral training resource, which is available to everyone.
Engagement needs to be across all levels of theorganisation. During World Environment Day, an annual
platform for environmental public outreach led by theUnited Nations Environment Programme (UNEP), thecompany rallied employees to come together, involunteering to plant trees and on the cause of waste
reduction, with a particular focus on combating plastic
pollution. We launched a visually engaging poster
campaign, which showcased personal activities sharedby our people, such as waste separation and beach orforest clean-ups. Regional directors also contributed
their insights, fostering a sense of community

involvement. Several manufacturing sites also used
World Environment Day as the spring board to begin
collaborating with waste collection companies, with theaim of exploring further waste reduction strategies,
enhancing our collective understanding of the waste
management landscape. We also used the day tolaunch our green office programmes, led by volunteer
groups in the offices. The aim was to reduce officewaste, reduce the use of printers, and ensure unused
food goes to charity. We have started to move awayfrom paper cups and reduced the number of officeprinters. We have also minimised canteen food waste insome of our plants. At our location in Utrecht, theNetherlands, for example, any food now remaining in
the canteen is donated instead of being thrown away.
We continued to focus on implementing standards that
positively impact our energy, water and waste targets. Partof this is our continued journey to roll out ISO 14001 (orequivalent environmental management systems)
certification across our sites. In 2023, we brought our large
manufacturing facility in Wuxi, China into the system.

OUTLOOK
Automation of our reporting processes has enabled us
to simplify reporting, while also enabling greater
granularity. This added level of detail will provide
business units with clearer operational dashboards on
the impact they have, enabling them to see the impactof their fleet, supplier choices & spending, and travel.
This helps us continue to decentralise decision
processes and engage everyone in creating a better
future.

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at a glance

As we develop reporting tools, we expect to linkfinancial and carbon impact reporting methods. We willcontinue our investigation of carbon pricing, following
an indicative carbon price for mitigation from our
marginal abatement cost curve assessments. This will
inform us to make economically efficient interventions
to reduce emissions.
We will also develop tools, similar to those we use tosupport our customer relationships, to link to ourvendor relationships, feeding vendors impact on us
back to them, and linking their commitments into
expected outcomes for JDE Peet's. This will help us tobetter factor sustainability into vendor selection
decisions, alongside financial decisions.

EXTERNAL
PROGRESS IN 2023
During the year, we saw the culmination of ourcollaboration with Nestle, supported by USAID, andjoined by Lavazza, Costa, and 11 of our supplierpartners, into a baseline footprint for green coffee inVietnam and Indonesia. This has given us theopportunity to work pre-competitively with various tradebodies to standardise the methodology and underpin amore dynamic and representative footprint for coffee
going forward. The aim is to generate a standard all
suppliers can work with to report on, and which we canembed into open source tools such as the Cool Farm
tool, that we also work with on the co-development of
the perennial reporting tools. The USAID study has also
18

Introduction

Strategy andvalue creation

Performance review
and outlook

led to the kick-off of a similar project for five Latin
American countries, this time supported by six otherroasters, and managed through the Sustainable Coffee
challenge team.
We also worked closely with the European coffee
federation, offering our life cycle analysis experience tosupport their pre-competitive assessment of the fullrange of single serve units in the market today. This
showed there was a limited difference in the impact of
all systems, when the range of drinks a consumer
makes is taken into account.
During the year, we also supported the development of
more accurate deforestation mapping tools by
Enveritas, an NGO that reports on the status of coffee
within supply chains through their unique reporting
process. This will help us address deforestation in thecoffee value chain, which at present contributes to thenegative environmental footprint of the commodity. It is
important that farmers remain included, and are notexcluded from supply by inaccurate data. Our approachhas enabled us to work with governments andregulatory groups to ensure entire countries remain
deforestation-free within their coffee supply chains (seethe Responsible Sourcing section earlier in the reportfor more information).

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response to potential carbon labelling legislation. With
the expected launch of an updated GHG Protocol Land
Sector guidance18, and our new SBTi FLAG targets, wewill continue to work pre-competitively on the accurate
and correct reporting of changes in Soil Organic
Carbon, taking a conservative and landscape approach,as well as working on landscape removal tracking for
agroforestry trees. These will enable appropriate
reporting for the many farmers who already farm coffee
using regenerative practices, and which also forms thebasis of many of the intervention projects that we workon.

potential long-term solution for soil improvement andpossible carbon sequestration of on-farm waste. We
have built a consortium of interested stakeholders in
Brazil, and expect to move this to active field trials in
2024, which will be publicly reported for the benefit of
all farmers, alongside a number of other interventions tounderstand and build business models that will drive
potential systemic change to create long-term benefits
for coffee farmers.

We will remain actively involved in the LATAM baseline
study, and continue to develop deforestation tracking
tools to cover all sourcing locations. We will continue towork closely with World Coffee Research as they
continue their field trials. We also see biochar as a

OUTLOOK
Ensuring that there are clear data standards informs ourposition with the relevant trade bodies, and our

The GHG Protocol Land Sector and Removals Guidance explains how companies should account for and report GHG emissions and removals from land management, land use change, biogenic products, carbon dioxide removal technologies, and related activities in GHG inventories.

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at a glance

MANAGING OUR WATER USE
PROGRESS IN 2023
During the year, we strengthened the assessment ofwater risks at all our manufacturing locations and coffee
origins using a combined analysis, employing tools
such as the WRI Aqueduct, WWF Water Risk Filter, and
the Water Footprint Network Assessment tool. This,
combined with an external analysis through our insurer,
Argos, enabled us to define a risk profile for all our
manufacturing sites. This is also reflected in our
inclusion of water risk at coffee origins in our TNFD
assessment. Water is already part of our Responsible
Sourcing Assess, Address, Progress approach tocoffee.
In 2023, we launched our Water Stewardship Policy,
signed by our Chief Supply Officer, which creates thefoundation for our work to positively impact our water
footprint, especially in water-stressed priority basins tocreate impact where it matters most. It reflects theclose cooperation of our manufacturing leads, global
centre of excellence, and sustainability team, anddescribes our commitment to socially equitable,
environmentally sustainable, and economicallybeneficial water usage. The Policy also includes othertargets such as treating all our wastewater before being
discharged by 2030, and ensuring employees at our
manufacturing operations have access to safely
managed water, sanitation and hygiene (WASH)
facilities by 2030.

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Strategy andvalue creation

Performance review
and outlook

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We track our water progress on a monthly basis andshare results via the E-report to manufacturing plant
managers and senior leaders, with data available on adigital dashboard. At instant coffee manufacturing
plants, water progress is primarily tracked throughOPL3, a series of weekly reviews on performance in theplant with dedicated stakeholders. In 2023, we reduced
our water usage by 4% versus our base year andmanaged a 1% reduction in water intensity. We
achieved this by sharing best practices across our units,
while working closely with both manufacturing and
R&D.
With water insecurity set to be a major challenge thiscentury, our policy addresses the three dimensions ofwater stress: availability, quality and access.

Water availability
Our water availability roadmap is a direct
implementation of our Water Stewardship Policy andtargets efforts to sites deemed material through ourassessments. By looking at different timeframes,
optimistic and pessimistic scenarios, and combining
this with the dependency of water in the production
process, we are able to define which sites need toaddress water risks in their area. Based on this, we
contacted local water authorities to confirm the results,
helping to build action plans to reduce water stress. We
then integrated this into the enterprise risk
management, and cascaded to the respective owners.

In 2023, we identified nine sites that are in waterstressed basins and need to develop plans to address
and mitigate water availability challenges. Based on
this, we then reached out to water authorities and watersuppliers, reflecting our consideration of local context
and importance of local collaboration.
For example, at our site in Mollet, Spain, the drought inBarcelona led to a reduction in city water usage of 15%
compared to the previous three years. Based on such
experiences, we developed a Water Reduction
Playbook that was shared with our global
manufacturing sites to define action plans that support
the global water reduction roadmap.

Our six instant coffee production sites withdraw andconsume over 90% of our total operational water. We
work at all our instant sites to identify water reduction
projects to support an 18% reduction versus ourbaseline.
Our other sites produce dry products that use very
limited quantities of water in the manufacturing process,and the majority of our factories located in high orextremely high water-stressed areas are not water
intensive.

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Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

In 2023, our focus on water intensity reduction
extended to implementing multiple projects with aspend of less than 1% of our capex:• Implementation of water-efficient production
processes via investments in drain rehabilitation,
pipelines, and machines used to produce low wateruse products• Using rainwater collected from the roof as analternative water source for cleaning purposes• Joure, as the biggest groundwater consumer, began
piloting initiatives to reduce freshwater use.

We have plans in place to bring the remaining sites tothe same standard, and we are developing action plansto ensure uniformity in wastewater treatment standards.
One initiative involves the implementation of a metering
standard, providing a systematic approach to monitor
and manage water quality. We also collect chemical
oxygen demand (COD) numbers and pH data
biannually, and analyse surface water and public sewer
outputs. This approach enables us to gauge the impactof our wastewater discharge on the environment, laying
the foundation for necessary changes.

Water quality

We are also developing wastewater training
programmes, which will empower our SHE (Safety,
Health, and Environment) experts with the latest
knowledge and skills.

Quality water forms the lifeblood of our production
processes, especially in the creation of instant andliquid coffee. The intricate extraction process for instantcoffee, the cooling towers' infeed, and the quenching ofroasted coffee all rely on the purity of the water we use.
At the same time, water is vital in other processes within
our production sites, including heating, cooling, andcleaning. Given the key role water plays, we arededicated to maintaining the highest standards of water
quality across our operations.
Every drop of wastewater within our facilities undergoes
responsible treatment, whether by us or trusted third
parties. Currently, 39 out of our 42 sites process theirwastewater on-site, reflecting our focus onenvironmental accountability.

19

In 2023, we initiated an in-depth analysis of ourwastewater treatment levels, aiming for complete
transparency. While clarity on treatment levels is ourpriority, we are already making significant progress, andtracking COD impact every six months helps us makeinformed decisions. While 39 sites currently meet ourstringent standards, treatment levels differ between
factories, as the processing and local requirements
differ per site. At a minimum, we follow WHO standards
where local standards are missing. We aim to have fullclarity on treatment levels by our 2024 report.

CDP is a not-for-profit charity that runs a global disclosure system, helping organisations, including companies, better manage their environmental impacts.

Governance andrisk management

Financialstatements

84

Supplementary
information

In Johor, Malaysia, we invested EUR 10 million to
upgrade an existing wastewater treatment facility after
an uncontrolled spillage. These technical upgrades are
paired with improved cooperation with environmental
authorities. In parallel, we continue to investigate andaddress wastewater concerns in areas of heightenedrisk, such as Myanmar.
At several of our sites, we implemented wastewater
processing systems that help maintain environmental
integrity and generate biogas. This biogas serves as arenewable energy source within our operations,
underscoring our commitment to innovation andsustainability.

STAKEHOLDER ENGAGEMENT
On multiple occasions in 2023, local authorities
requested that our factories minimise their water use asa result of local droughts, which occurred during heatwaves in Europe. We actively engaged with theseauthorities, and highlighted the steps we have alreadytaken to minimise our water use and limit the impact toour operations.

OUTLOOK••

Water access
In 2023, we introduced the third pillar of our water
strategy, ensuring washing, sanitation and hygiene(WASH) facilities are in place for all our manufacturinglocations. Water access is a human right, and webelieve we need to be completely confident thatwashing, sanitation and hygiene is up to global
standards. Setting the baseline as 2023, we assessedthat already 88% of our factories comply with thestandards set by the WASH4WORK self-assessment
tool. For the plants not yet fully compliant, we have putplans in place to close the gaps in the coming years.
More details can be found in our CDP disclosure on
Water Security19 here.

••

We will continue our work on water availability,
quality and access in our factories.
We will further progress the water roadmap for
instant coffee manufacturing sites. Because waterand energy usage is correlated, we aim to include
water reduction initiatives in our energy roadmaps.
We expect to introduce new KPIs for cooling waterand recycled water. Additionally, we have madeprogress with data maturity of our water use, bothintake and discharge, which will help us tobenchmark and identify further reduction
opportunities.
In 2024, we will further develop our work on the
Science Based Targets for Nature and, based onmateriality, set localised water-related targets.

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CLIMATE AND NATURE-RELATEDRISKS AND OPPORTUNITIESINTRODUCTION
Climate change is a huge threat to the planet, andcreates a significant risk to the current way of doing
business. However, as a business, we need to look forways to balance risk with opportunities, which can often
be leveraged by adapting to changing circumstances.
As we have done in previous years, we use therecommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) to determine our climaterelated risks and opportunities and adapt our strategy
accordingly. Using this framework enables us to create
a better understanding of the climate risks and ourresilience, while ensuring we have the right governance,
strategy, risk and opportunity management in place. In
2023, we reviewed our existing risks and opportunities
and expanded our TCFD approach with the newly
released Task Force on Nature-related Financial
Disclosures (TNFD) guidance.

GOVERNANCE
Governance and Board oversight of climate change andnature is described in Sustainability Governance in the
Board Committees section of this report. Performancemeasures related to climate-related impacts are not partof the management remuneration.

Introduction

Strategy andvalue creation

Performance review
and outlook

RISK AND OPPORTUNITY MANAGEMENT
Coffee is heavily dependent on nature and specificenvironmental assets and ecosystems. Soil healthensures our coffee has access to the right nutrients
when growing. Coffee is primarily rain fed, but requiresconsistent and predictable precipitation patterns forfarmers to rely on. Biodiversity is essential for disease
prevention, while ecosystem intactness, tree cover andabundance of different tree species provide insights into
the current state of nature. Temperature creates theright climate for coffee to grow.
Based on current policies and pledges by countries toaddress climate change, it is estimated thattemperatures will rise by between 1.8-2.7°C by the endof the century. To model the risks associated with this,we chose a 1.5° C scenario and a 4°C scenario torepresent the full breadth of possible outcomes,
covering accelerated global action through to a delay or
failure to fully implement current policy pledges. For the
1.5° C scenario, we used the International Energy
Agency Net Zero Emissions 2050 (IEA NZE 2050) modeland for the 4°C scenario we used the Representative
Concentration Pathway 8.5 (RCP 8.5) model. Finally, we
mapped these risks and opportunities to where in thevalue chain they have the largest impact. For moredetails of what is included in our climate scenarios, how
the outcomes affect our broader strategy approach, andthe direct actions we are taking please see:
CDP response section C3.

Governance andrisk management

Financialstatements

Supplementary
information

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at a glance

Following the model outcomes, we mainly see transition
risks in the short (1 year) to medium (>1 to <5 years)
term, whereas we believe physical risks andopportunities are more likely to be apparent over the
longer term (>5 years).
Within our overall enterprise risk management process,we define risk levels (low / medium / high) which are
based on the company's financial assessment and risk
appetite, depending on the topic. Our risk appetite
ranges from Averse (avoid risk) through to Cautious /Prudent / Open / Higher (accept high risk). Overall,climate risks are considered high in risk level, and wetake a Cautious approach.
The process of identifying, assessing and managing
climate and nature risks and opportunities is describedin the Risk management process section of this report

STRATEGY
Transition risks
In a 1.5°C scenario, environmental regulations willtighten in most regions, beginning in Western countries.
This includes sectors such as agriculture, industry andtransportation. As a result, the cost of energy from fossil
fuels will increase. As actions to limit global warming
will be needed in the short-term, the impact is expected
to become particularly relevant in the run up to 2030,
and can already be seen today. This resulted in thefollowing three material transition risks:• Packaging regulation• Deforestation regulation• Carbon pricing mechanisms.

Introduction

Strategy andvalue creation

Performance review
and outlook

Within the quantitative analysis, while all significant
transition risks were high in terms of typical ERM
values, we chose to categorise the relative risk levels
with climate transition risks in order to ensure suitableassessment of mitigation investments.
For JDE Peet's' climate analysis, we used a cumulative
EBIT risk between 2023 and 2030. Risks were then split
into:• Low 0 to <1% EBIT
• Medium >1% to <5% EBIT
• High >5% EBIT.

Governance andrisk management

Financialstatements

Supplementary
information

restoration and regeneration. No existing JDE Peet's
assets were seen to be at risk.
To estimate the financial impact of these risks, we haveused the following assumptions in our models: growthrate of the business; cumulative impact up to 2030 fortransition risks; and scenario planning, from no change
in regulation, to regulation change in the EU only, toregulation change worldwide. This has been based on
current pricing of our products.

Mitigation
Physical risks
Physical risks could pose a greater threat to the foodand beverage industry if the world fails to sufficiently
curb GHG emissions. Under such a scenario, which
focuses on precipitation change and extreme weather
events, our agricultural supply chains and infrastructure,including our own operations, could be significantly
impacted. In a 4°C scenario – in other words, strong
and accelerated climate change – agriculture will
increasingly be affected towards 2050. In the absenceof any action, coffee yields will decrease due tochanging precipitation levels, increased pests, andreduced bean production per tree. The area of land
suitable for coffee production, under current practices,would be impacted in many regions and competition forland would likely increase.
We have identified two physical risks: chronic climate
impact on supply chain and soil health. We have also
identified one opportunity: Ecosystem protection,

As described in the table below we have a mitigation
strategy in place to address these risks. The initial
estimates for mitigating the financial implications havebeen integrated into our budgeting processes and arepart of our business models as described in note 3.3
impairment of non-current assets of the Consolidated
Financial Statements . These costs do not significantly
increase our cost base.

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Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

Financial
implication(cumulative up
to 2030)

Mitigation strategy (management of risk/opportunity)

Cumulative financial impact on EBIT

Risk

Nature /ClimaterelatedOpportunity / Risk description

ImpactTransition Risk - Climate
Packagingregulation

The EU Packaging and Packaging Waste
Regulation (PPWR) requires all packaging to
be recyclable by 2030 and limit access to themarket for non-recyclable or compostableproducts.

Currently, 79% of our packaging components isdesigned to be reusable, recyclable or compostable.
The remaining material will still require technologicaladvancements and investment to prevent loss ofrevenue due to non-compliance.

Transition Risk - Nature /Deforestation & Climate
deforestation
regulation

Continued deforestation leads to carbon
sinks being depleted and nature being
destroyed. The EU Deforestation Regulation(EUDR) is in place, which mandates all
coffee imported into the European Union be
deforestation-free with accompanied due
diligence requirements.

Mapping all coffee plots globally allows us to detect
deforestation when it happens and allows forrestoration before coffee is grown on those plots.
For key regions, we have mapped coffee-related
deforestation to be negligible since the cut-off dateof year-end 2020. As the regulation requires all
coffee plots to be mapped, we expect premiums will
be paid to ensure supply chains of validated

Transition Risk - Climate
Carbon pricing
mechanisms

Carbon pricing mechanisms, such as EU
ETS, are expected to broaden in scope andreach, and increase in cost.

An increase in carbon pricing and in global
geopolitical activity drive energy costs higher, which
impact both JDE Peet’s' direct operations and also
impact fertiliser costs leading to further pressure on
farmer livelihoods.

Physical Risk - Nature /Chronic climate Climate
impact on
supply chains

Climate change and changing weather
patterns drive a decrease in coffee yields
due to changing precipitation, and increased
pests and diseases. The area of land suitablefor coffee production is reduced undercurrent practices, and competition for land
would likely increase.
Such changes would put upward pressure
on the price of coffee, while also likely
increasing market volatility.

While we retain our flexible sourcing strategy, thissystemic industry-wide risk may lead to increased
coffee prices, which might lead to a reduction ofcoffee variety and quantity, and subsequently mightmean that many consumers that today enjoy
drinking coffee will not be able to do so in the future.

Upstream

Value chain

Own operations

Downstream<1 yearTimeframelll

Our packaging roadmap is in place to transform all materials towards recyclable
materials. This will be delivered in a sequential approach, leading to yearly
investments in new production lines and trials to validate material changes. Moreinformation can be found in the Packaging section of this report. Initial estimates
for the cost and capital expenditures to mitigate the financial implication areroughly estimated at EUR 300 million up to 2030.

lll

Our sourcing flexibility allows us to leverage strategic relationships with suppliers,
and continue to develop supply options.
More information can be found in the Deforestation-free supply chains:
Protecting local environments section of this report. On top of our current andfuture investments to source responsibility sourced coffee, including preventing
deforestation at the source (estimated to be EUR 250 million until 2030), we also
include an initial estimate of EUR 200 million in our budgets to cover potential“deforestation free” supply chain premiums.

lll

We have put in place an SBTi-validated climate target to reduce emissions. We
have also created a roadmap to define future options to reduce impacts,
including a balance of available technologies and R&D investments. Estimatedinitial implementation cost to mitigate the financial implication: EUR 100 million
up to 2030.

Cannot be
estimated

While climate change trails GHG emissions, and impacts are likely to become
most severe over the long-term, we are already investing to address thesechallenges today. Our farmer engagement programmes strengthen climate-smart
agriculture among smallholder farmers. Our support of World Coffee Researchcontributes to the development of coffee varieties that are more suitable for achanging climate. We invest in a diversity of origins to ensure coffee farming
remains a viable and attractive option across a broad set of countries.
We continue to lead conversations to scale these activities into cross-sector
initiatives, to support broad farmer resilience.

1-<5 years >>5 years lll 0% to 1% EBIT lll >1% to 5% EBIT

lll > 5% EBIT

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Nature /Climaterelated

Risk
Physical Risk Soil health

Physical
Opportunity Ecosystem
protection,
restoration andregeneration

JDE Peet’s
at a glance

Value chain

NatureNature

Upstream

Introduction

Strategy andvalue creation

Governance andrisk management

Opportunity / Risk description

ImpactWith growing demand for coffee, soil healthwill be depleted if not managed sustainably.
Lack of sustainable soil management, suchas erosion control, mulching or efficient useof fertilisers and pesticides, will lead tobiodiversity impacts, such as soil quality
impact and decreased species abundance.

Soil invertebrates, such as earth worms and insect
larvae, and the birds that feed on them, could
disappear across coffee sourcing regions. Thissystemic, industry-wide risk may lead to supply
limitations, a reduction of coffee variety and quantity,and subsequently the availability of coffee. Althoughsoil health is highly localised, our analysis against the
GCP reference standards show that soil
management is poor in all of our sourcing countries
and will require multiple years of investment to see
improvements.
Our current 63 projects aim to improve resilienceand create a nature-positive impact. Our brands arewell positioned to leverage the active role we play innature restoration. Increasing brand penetration andreach, through leveraging the right marketing
channels, drives increased sales.

We will invest in farmer programmes tomitigate negative impacts on nature. From
this, we expect brands to be in a strong
position to leverage these credentials,
increasing brand value and revenue.

Own operations

Performance review
and outlook

Downstream<1 yearTimeframe

1-<5 years>5 years lll 0% to 1% EBIT

Financialstatements

Financial
implication(cumulative up
to 2030)

Cannot be
estimated

lll

Supplementary
information

88

Mitigation strategy (management of risk/opportunity)
Our Responsible Sourcing pillar works to provide farmers with the knowledge
and skills to improve soil management practices, such as cover crops, mulching
and trenches. By educating farmers to use soil analysis tooling to find nutrient
deficiencies, we aim to improve fertility. By investing on the ground, we are able
to foster the right behaviour to protect nature whilst improving farmer outcomes.
We have also set this expectation among our suppliers through our Supplier SelfAssessment Forms – suppliers are then required to put in place action plans toimprove soil management. The implementation costs to improve soil health ispart of our total approach to responsible sourcing, and is already included aspart of the deforestation mitigation costs.
We have active restoration projects running in primary sourcing countries,
including Uganda, Peru, Indonesia and Vietnam, and we aim to expand these inscope and impact. These reforestation projects are aimed at enabling farmers tokeep their farms resilient to the impact of climate change, as well as keeping
protected areas compliant. The systemic change we are driving through ourengagement with ICO and GCP is aimed at creating a better future.

lll >1% to 5% EBIT

lll > 5% EBIT

Resilience

Metrics and targets

As described in the table above, as part of our mitigation strategy, we are well-equipped to handle the challenges that
may arise, thanks to our extensive geographic reach, adaptable supply chain, diverse product offerings, wellestablished brands and financial stability. These factors give us the resilience and ability to shift towards a moresustainable, lower-carbon business model.

More information on the metrics and targets used in this assessment can be found in the Responsible Sourcing andMinimising Footprint sections of this report.

Consolidated Financial Statements
As described in note 1.2 of the Consolidated Financial Statements, all financial impacts are taken into account in the
preparation of the Consolidated Financial Statements. Since all investments listed in the table above are future
investments without firm commitments towards suppliers, this is not included as part of capital expenditure in note
3.4.1 Property, plant and equipment - owned assets.

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Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

89

EU TAXONOMYINTRODUCTION TO EU TAXONOMY
In 2019, the EU Green Deal was launched, which
committed the European Union to becoming carbon
neutral by 2050.
One of the key components of the EU Green Deal is aclassification system called EU Taxonomy. The EU
Taxonomy has the objective of financing the transition
and redirecting capital flows towards a moresustainable economy. The current regulation prioritises
activities with a large share of overall emissions andreduction potential, focusing on the energy,transportation, buildings and selected manufacturingsectors.
Within the EU Taxonomy, the following six
environmental objectives are identified:• Climate change mitigation• Climate change adaptation• Sustainable use and protection of water and marine
resources• Pollution prevention and control• The transition to a circular economy• The protection and restoration of biodiversity andecosystems

The EU Taxonomy requires EU companies to assess if
their economic activities are eligible and/or aligned withthe activities described in the regulation. The statisticalclassification of economic activities established inRegulation (EC) No 1893/2006 (also known as the NACE
classification) provides guidance for companies todetermine if a company’s economic activities are
eligible. To determine eligibility, a company is required
to analyse whether the descriptions of the activity, as
included in the Taxonomy, matches with its own
economic activity.
Once the economic activity is determined to be eligible,
companies should assess the proportion of theireconomic activities that are aligned with therequirements linked to this activity. Alignment can beachieved if the economic activities meet the predefinedTechnical Screening Criteria (TSC). These TSC aredefined per activity and consist of substantial
contribution criteria (SC), Do No Significant Harm(DNSH) principles and should comply with the Minimum
Safeguards requirements as set out in the EU
Taxonomy.
Based on this assessment, companies should report thefollowing specific KPIs on their eligibility and alignment:• Turnover• Capex• OpexFor this year’s reporting cycle, companies are required
to report on their eligibility for all six environmental
objectives. Reporting on alignment for this financial year
is only required for environmental objectives of climatechange mitigation and climate change adaptation.

ELIGIBILITY AND ALIGNMENT OF ECONOMIC
ACTIVITIES OF JDE PEET’S AS DEFINED IN THE EUTAXONOMYAs described in note 1 of the Consolidated Financial
Statements section of this report, JDE Peet's is theworld's leading pure-play coffee & tea company,
serving approximately 4,100 cups of coffee or tea persecond. JDE Peet's unleashes the possibilities of coffee& tea in more than 100 markets with a portfolio of over
50 brands.
In November 2023, the European Commission
published the final set of EU Taxonomy criteria for
economic activities making a substantial contribution to
the four environmental objectives. In 2022, we worked
with the draft annexes for the other four environmental
objectives of the EU Taxonomy. Once completed, weused the final delegated acts, and reassessed oureligibility for all six objectives. In the draft version, theactivity ‘Manufacture of food products and beverages’,
which covers the majority of JDE Peet’s' turnover, wasstill included. The reassessment however, showed thatthe largest part of JDE Peet’s' turnover was omitted in
the final version of the Environmental Delegated Act

Based on the latest EU Taxonomy legislation, JDE
Peet’s identifies only one economic activity as being
eligible for the Taxonomy:• Product-as-a-service and other circular use andresult-oriented service models, as JDE Peet’s sells
and leases coffee machines to customers.
Based on this activity, JDE Peet’s contributes to one of
the environmental objectives of the EU Taxonomy: Thetransition to a circular economy.
Activities as mentioned under Disclosures Delegated
Act Annex I 1.1.2.2 Numerator sub c are considered to
be immaterial for JDE Peet's and are therefore notadded as separate activity.
Since reporting on alignment is only required withrespect to the two climate objectives in 2023, JDE
Peet's will not report any Taxonomy-aligned turnover,capex and opex for this reporting year. JDE Peet’s will
move to gather the data and assess its Taxonomyalignment for next year’s reporting for all six
environmental objectives.

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JDE Peet’s
at a glance

DESCRIPTION OF KPIs

Introduction

Strategy andvalue creation

Performance review
and outlook

JDE Peet’s defines its key performance indicators (KPIs)
as determined in accordance with Annex I of theDisclosures Delegated Act supplementing Article 8 of
the EU Taxonomy Regulation, as follows:

Definition of capex KPI: The capex KPI is defined as
Taxonomy-eligible capex (numerator) divided by JDE
Peet’s total capex (denominator). Taxonomy-eligible
capex (numerator) is defined as all capex related to theTaxonomy-eligible economic activities of JDE Peet's.

Turnover KPIOpex KPI

Accounting policy: The turnover KPI as implemented by
JDE Peet’s in the EU Taxonomy is in line with thedefinition of Revenue in note 2.2 of the Consolidated
Financial Statements. The revenue allocated to services
in this note, being 2%, represents the revenue eligible
for the activity 'product-as-a-service'.
Definition of Turnover KPI: The turnover KPI is definedas the proportion of Taxonomy-eligible economic
activities in JDE Peet’s total turnover (numerator)
divided by the net turnover (denominator). The
denominator of the turnover KPI is based on JDE Peet’s
consolidated revenue in accordance with IAS 1.82(a),included in JDE Peet’s Consolidated Income Statement.

Capex KPI
Accounting policy: Capex as reported in the EU
Taxonomy is in line with capex as reported under EU
IFRS (IAS 16, 38 and IFRS 16) in notes 3.2 and 3.4 of
the Consolidated Financial Statements for both tangible
and intangible assets. Capex can be reconciled as theacquisition of businesses, capital expenditure and initiallease recognition lines in the tables included in thenotes to the Consolidated Financial Statements.
Goodwill is not included in capex as it is not defined as
an intangible asset in accordance with IAS 38.

Accounting policy: Costs with respect to Opex arerecognised in line with IFRS and are reported as part of
the Selling, General and Administrative expenses innote 2.3.
The opex allocated to this KPI includes all costs related
to maintenance and repair, research and development
expenses, short-term leases and building renovation
measures.
Definition of opex KPI: The opex KPI is defined as
the proportion of Taxonomy-eligible economic activities
in JDE Peet’s total opex (numerator) divided by theopex (denominator).

Development in performance of the KPIs
The turnover, capex and opex related to the activity'product as a service' is stable compared to last year,
refer to the tables below. More information on theanalysis of developments in turnover, capex and opex
in 2023 can be found in the Financial Performance
section of this report.

Governance andrisk management

Financialstatements

Supplementary
information

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Performance review
and outlook

Governance andrisk management

Financialstatements

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Supplementary
information

Reporting on KPIs
An overview of the KPIs is reported below (in EUR million where applicable):TurnoverSubstantial Contribution Criteria

Economic activities Code (2)(1)

DNSH (Do No Significant Harm) criteria

Water (7) Pollution (8)Climatechangemitigation(11)

Climatechangeadaptation(12)

Water (13)Pollution(14)

Y; N; N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

Circular Biodiversity(10)
economy(9)

Turnover(3)

Proportionof turnover(4)

Climatechangemitigation(5)*

Climatechangeadaptation(6)

Millions,
local CCY%

Y; N; N/EL

Y; N; N/EL

Y; N; N/EL

Y; N; N/EL

Y; N; N/EL

Circular Biodiversity
Minimum Proportion
economy(16) safeguardsof(15)(17) Taxonomyaligned(A.1.) or
eligible(A.2.)
turnover,year N-1(18)

Category
Category(enabling (transitional
activity)
activity)
(19)
(20)

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)*
Turnover of environmentally
sustainable activities (Taxonomyaligned) (A.1)

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0.00

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0%

0%

Of which in enabling

0.00

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0%

0%

Of which is transitional

0.00

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0%

0%

N

Y

N

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Product as aserviceCE 2.13
179

2%

179

2%

N

N

N

1%

Turnover of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2)
Total (A.1+A.2)

1%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible
activities

8,012

98%

99%

Total (A+B)

8,191

100%

100%

n Not applicable* Alignment only mandatory to disclose on climate change mitigation and adaptation, for which JDE Peet's has no eligibility.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Substantial Contribution Criteria

Capex
Economic activities Code (2)(1)

92Supplementary
information

DNSH criteria (Do No Significant Harm)

Water (7) Pollution (8)Circular Biodiversity
economy(10)(9)

Capex (3) Proportionof capex (4)Climatechangemitigation(5)*

Climatechangeadaptation(6)

Millions,
local CCY

Y; N; N/EL

Y; N; N/EL

Y; N; N/EL

Y; N; N/EL

Y; N; N/EL%

Financialstatements

Climatechangemitigation(11)

Climatechangeadaptation(12)

Water (13)Pollution(14)

Circular Biodiversity
Minimum Proportion
economyof(16) safeguards(15)(17) Taxonomyaligned(A.1.) or
eligible(A.2.)
capex, year
N-1 (18)

Y; N; N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

Category
Category(enabling (transitional
activity)
activity)
(19)
(20)

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Capex of environmentally sustainable activities (Taxonomy-aligned)*
Capex of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
Of which in enabling
Of which is transitional

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0.00

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0%

0%

0.00

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0%

0%

0.00

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0%

0%

N

N

Y

N

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned)
Product as aserviceCE 2.13
57

15 %

57

15%

N

N

11%

Capex of Taxonomy-eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities)(A.2)
Total (A.1+A.2)

11%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESCapex of Taxonomy-non-eligible
activities

334

85%

89%

Total (A+B)

391

100%

100%

n Not applicable* Alignment only mandatory to disclose on climate change mitigation and adaptation, for which JDE Peet's has no eligibility.

JDE Peet's N.V.
Annual Report 2023

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at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Substantial Contribution Criteria

Opex
Economic activities Code (2)(1)

Opex (3) Proportionof opex (4)Millions,
local CCY%

Financialstatements

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information

DNSH criteria (Do No Significant Harm)

Water (7) Pollution (8)Circular Biodiversity
economy(10)(9)

Climatechangemitigation(5)*

Climatechangeadaptation(6)

Y; N; N/EL

Y; N; N/EL

Y; N; N/EL

Y; N; N/EL

Y; N; N/EL

Climatechangemitigation(11)

Climatechangeadaptation(12)

Water (13)Pollution(14)

Circular Biodiversity
Minimum Proportion
economy(16) safeguardsof(15)(17) Taxonomyaligned(A.1.) or
eligible(A.2.) opex,
year N-1(18)

Y; N; N/EL

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

Category
Category(enabling (transitional
activity)
activity)
(19)
(20)

E

T

A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Opex of environmentally sustainable activities (Taxonomy-aligned)*
Opex of environmentally sustainable
activities (Taxonomy-aligned) (A.1)
Of which in enabling
Of which is transitional

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0.00

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0%

0%

0.00

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0%

0%

0.00

0%

N/EL

N/EL

N/EL

N/EL

N/EL

N/EL

n/a

n/a

n/a

n/a

n/a

n/a

n/a

0%

0%

0%

N

N

Y

N

A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned)
Product as aserviceCE 2.13
45

30 %

45

30%

N

N

31%

Opex of Taxonomy-eligible but notenvironmentally sustainable activities(not Taxonomy-aligned activities)(A.2)
Total (A.1+A.2)

31%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Opex of Taxonomy-non-eligible
activities

108

70%

69%

Total (A+B)

153

100%

100%

n Not applicable* Alignment only mandatory to disclose on climate change mitigation and adaptation, for which JDE Peet's has no eligibility.

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Assessment of compliance with Regulation(EU) 2020/852.
A precise definition is provided per activity included in
the annexes of the Climate Delegated Act andEnvironmental Delegated Act, describing the economic
activities that fall within the scope of the EU Taxonomy.
The eligible activities reported on in these disclosures
were activities that fall within these precise definitions
provided by delegated acts and recommendations by
the Platform on Sustainable Finance. In our assessmentof the eligibility of our businesses’ activities, we used
the available definitions provided so far and applicable
to companies falling under the NFRD for 2022:• The Disclosures Delegated Act, published 10
December 2021 and amended 21 November 2023
• The Environmental Delegated Act, the amendments
to the Climate Delegated Act and the amendments
to the Disclosures Delegated Act, published 21
November 2023

Introduction

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In addition to these, the reporting utilised the mostrecent information available from the FAQ document(related to the EU Taxonomy Regulation on thereporting of eligible economic activities and assets)published by the EU Commission in February 2022,
December 2022 and June 2023. We have acted in good
conscience and have rigorously followed the scope inthe definitions provided by the delegated acts and theinformation provided in the FAQ published by the EU
Commission. We have not included as eligible any
activities that were deemed out of the scope of thesedefinitions. When there was doubt regarding theinclusion of an activity, we have not included the activity
as eligible. If, in the future, any of JDE Peet’s’ activities
are shown to be within the scope of the descriptions
included in the EU Taxonomy eligible, they will be
added in subsequent reporting years.

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Introduction

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Performance review
and outlook

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information

CONNECTING PEOPLE
SUMMARY KPIs20

WE UNLEASH THE POSSIBILITIES OFOUR EMPLOYEES!

Our workforce at 31 December21
No. of employees

Internal fill rate global leadership team

Employee workplace
experience indicator21

21,19661.5%

77%

Our company’s purpose, vision and values guidethe behaviours of our more than 20,000
employees worldwide.
Our Purpose
We unleash the possibilities of coffee & tea to create abetter future

22

Diversity, equity and inclusion
Share of women in
leadership positions22

Pay equity-gap

41.3%

<1 %

DE&I champions &ERG members

270

Food safety and quality

Training

Occupational
health & safety

Total manufacturing
sites with FSSC 22000
certification or equivalent

Average training hours
per employee

Total Recordable
Incidents Rate (TRIR)

85%

23

0.59

20

More information can be found in the Overview of our non-financial information tables and the Non-financial information section of this report.
Percentage of JDE Peet's employees that score with a 4 or 5 (out of max 5) to the engagement survey questions.
22
Employees who are part of the Executive Committee and Global Leadership team of JDE Peet's.
21

Our Vision
A coffee & tea for every cup

Our Belief
It’s amazing what can happen over a cup of coffee or tea

Our Values

In 2023, we continued to embed our values across ouroperations, ensuring that they helped guide our people's
behaviour at all levels of the organisation.

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JDE PEET'S EMPLOYEE VALUEPROPOSITION
The employee experience at JDE Peet’s is a journeymarked by impactful actions, personal and professional
growth, and the shared purpose of enhancing the global
coffee & tea landscape while having a positive andsustainable impact on the world.
With a love of coffee and all its possibilities, we play apositive role in many cultures in many countries, where
millions of coffee moments take place each and everyday. We are the champions of coffee democracy.
Whoever you are, whatever you enjoy, there is a coffee
or tea for you.
We have crafted many brands that are enjoyed aroundthe world, from Moccona, Jacobs, and L’OR, to Douwe
Egberts, Peet's and Campos.
We deliver above and beyond. We move fast, eachplaying our part passionately. Every effort counts.
Action is what matters. We are progressive in ouroutlook, ambitious in nature, resourceful in action, anddecisive in approach.
The core of our employee experience:
Unleash Your Possibility

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Introduction

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and outlook

What is it like to work at JDE Peet's?
WHAT IS IT LIKE TO WORK AT JDE PEET'S?

Governance andrisk management

Financialstatements

What's in it for me?
WE DELIVER ON
OUR
COMMITMENTSGROWTH IN A
CATEGORY AS DIVERSEAS IT IS DYNAMIC

Our focus demands
people who think fast
and act. Real life is fullof twists and turns, so
we are agile,
resourceful, and readyto change course at a
moment's notice.

We act on our
intentions, follow
through on what wasagreed, and continuallypush forward.

As the world's leading pureplay coffee company, we havebig ambitions. We know you
do, too. The world of coffee isdynamic, ever-changing, andoffers endless opportunities
to learn, develop and thrive,no matter what your role.

If you want to boost your career, while having hands-on
experience and support from colleagues and mentors,
JDE Peet's is the right place to be. It is the place tolearn, grow and discover your strengths!

I am very proud to work for JDE Peet's becauseof the high-performance culture and theenergetic and driven professionals I work with.

Since 2012, I’ve been on an exciting journey at
JDE Peet's. I started as a salesperson in Retail
Norway and since then I’ve had the opportunity
to grow and develop within different roles.

Josephine Bijloos
HR Manager Professional

Today, I am part of the Nordic Shopper team. This gives
me new input to learn and share experiences acrossdifferent markets. It’s exciting and motivating to workwith strong brands in several countries, where you are
driven forward by talented colleagues who all share thesame passion for coffee.

Ibis Kalgraaf
Customer Shopper Manager

Dumitru Cristea
Trade Promotion Specialist

WHAT'S IN IT FOR ME?

WE ARE IMPACTFOCUSED AND
AGILE

My coffee journey with JDE Peet's started backin 2015. Since then I have held multiple roles (Iam currently on my fourth), and have had thechance to explore the Supply Chain & Sales
departments. I have always been a status-quo
challenger and a promoter of 'continuous improvement
as an attitude', which has brought me continual learning
opportunities and great satisfaction over the years.

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THE FREEDOM TO
MAKE AN IMPACT
We thrive on the freedom
to pursue opportunities.
We work as partners andwe bring out the best ineach other, acting
inclusively and as teams
to challenge the norm,
develop new ways
forward, and make an
impact.
I started with JDE Peet’s as a machine
operator, then soon got the opportunity to workin various supervisory and coordinator roles.
This has provided me with the opportunity to grow.
What's most important is that we challenge, learn from,and support each other along the way.

Julia Archie
Production Manager

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What am I part of?

Introduction

Strategy andvalue creation

Performance review
and outlook

WHAT AM I PART OF?
PLAYING OURPART TOPOSITIVELYIMPACT THE
WORLD

AN ORGANISATION
AT THE HEART OF
THE WORLD OF
COFFEE & TEA
Coffee & tea are at theheart of life. During the
big moments and thesmall, they keep us
energised and bring us
to life on our specialdays. Deals are made,conversations are had,life is lived.

As a business
committed tounleashing thepossibilities of coffee &tea for a better future,
we recognise our
responsibility to elevatestandards within ourbusiness and beyond.
I’ve been in coffee for over 20 years andsustainability is a core part of why I enjoy theindustry. As we buy 8% of the world’s coffee,
JDE Peet’s holds the awareness and drives action onwhat and how we can do better; from working withWorld Coffee Research to our Common Grounds
programme which support farmers and all levels within
the value chain

It's great to work in a factory with a rich history,
while constantly innovating--all while the smellof coffee is all around you! My admiration goesto everyone involved in our products - technicians,
foremen and our operators. We work to prepare awonderful coffee experience for our consumers.

Iveta Urbanová
Production Engineer

Shaun Kumar
Sales Manager & Coffee Ambassador

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GROWING OUR PEOPLE
At JDE Peet’s, we use standard playbooks (policies) to
guide our global people processes throughout the entire
employee lifecycle, from recruitment to performanceand talent management.
These playbooks enable us to drive standardisation andobjectivity, eliminating potential bias and ensuring an
inclusive experience in the workplace. We place ourpeople at the centre of everything we do. These
playbooks are shared with our employees via ourinternal website.
Overviews, capability building materials and guidanceon our people processes are available for all relevanttarget audiences online, while our HR professionals canaccess detailed guidance and materials through a
dedicated global platform.

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TALENT ACQUISITIONAt JDE Peet's, we aim for a streamlined talent cycle andtalent acquisition (TA) is our starting point. Our objective
is: to attract and recruit the right individuals for the rightpositions to strengthen our talent pipeline, while
fostering internal mobility and ensuring a seamless
employee experience.

A STANDARDISED APPROACH TO TALENT ACQUISITION
Our TA playbook lays the groundwork for astandardised and robust recruitment process. By
applying consistent methodologies and frameworks
across the organisation, we streamline and optimise theselection and assessment of candidates. The playbook
defines the criteria for the best fit within JDE Peet's
through an in-depth assessment and interview process,ensuring alignment with our organisational goals andvalues.
The best fit for JDE Peet’s is defined through four
different lenses:

CHAMPIONING EQUITABLE PRACTICESJDE Peet's is committed to creating an inclusive anddiverse workforce, and our talent acquisition practices

Introduction

Strategy andvalue creation

Performance review
and outlook

reflect this commitment. Our playbook champions
equitable practices, including balanced shortlists forgender and nationality. We firmly believe in creating an
inclusive culture that celebrates diverse perspectives
and experiences, aligning with our goal of building astrong, connected, and high-performing team.
By embedding DE&I principles into our TA process, we
strive to attract and select the best talent while fostering
a diverse and inclusive workforce. DE&I is embedded inour signature recruitment process to decrease potential
bias and increase objectivity. By involving multiple
interviewers, leveraging an advanced applicant tracking
system, and implementing online assessments, weensure fairness, reduce potential bias, and enableobjective selection.

DRIVING TALENT INSIGHTS THROUGH OUR APPLICANT
TRACKING SYSTEM
We use our Applicant Tracking System (ATS) to create a
Global TA KPI dashboard that focuses on governance,
time, quality, sourcing, and cost. By harnessing thistechnology, we gain valuable insights to drive
optimisation and make informed decisions. Our ATS
centralises talent data and provides us with vital
insights into our recruitment efforts. Through the Global
TA KPI dashboard, we align our strategies withorganisational goals and monitor KPIs to enhance
recruitment effectiveness and target the right talentpools. The ATS ensures transparent governance bytracking adherence to policies and procedures. It helps
us maintain compliance and a fair process for all
candidates.

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PROGRESS IN 2023

ONBOARDING

IMPROVING CANDIDATE EXPERIENCE WITH REVAMPEDLOCAL CAREER PAGES

The purpose of the onboarding process is to smoothly
integrate new employees into the organisation. This isdone by familiarising them with the company culture,policies, and their roles, providing training, fostering
engagement, and ensuring compliance with regulations.
Effective onboarding enhances retention, productivity,
and the overall employee experience. Our Onboarding
playbook explains the process within the company,
ensuring that after the first 90 days the new employee:

In 2023, we successfully relaunched our 40 local career
pages. This strategic initiative aimed to effectively
communicate our Employee Value Proposition message
to prospective employees, providing clear insights into
what it's like to work at JDE Peet's and the sense of
purpose our employees contribute to.
Our revamped local career pages serve as a window
into what working at JDE Peet's is like. Throughengaging content, compelling visuals, and real-life
employee stories, we provide candidates with a genuine
understanding of our culture, values, and the unique
opportunities for growth.

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Strategy andvalue creation

Performance review
and outlook

ENGAGEMENT & RETENTIONPROGRESS IN 2023

Engagement is an emotional connection to one’s role,team or company. Engagement has a profound impact
on well-being, and there is evidence that people withhigher levels of engagement are less prone to stress orburn-out, and form more effective relationships at work
and in their private lives. Research shows that engaged
teams and organisations have greater productivity andbusiness performance, generating higher profits andmore positive customer experience.

In 2023, 85% of our employees took part in ourcompany-wide annual survey, and our aggregatedresults expressed as the Workplace Experience
Indicator showed that 77% of our employees scored a 4
or 5 (on a 5-point scale) on the engagement survey
questions, a 2 percentage point increase compared to2022. Building on the success of the previous year, in2023 we continued to measure DE&I and well-being
through additional questions. Reviewing the ratio of
engaged to actively disengaged employees globally perdifferent employee group, in 2023 we saw no significant
differences across either gender or generation.

Our engagement strategy is aimed at driving
engagement via our people managers, while our
Executive Committee is an engagement role model with
their engagement results placing them in the top
quartile amongst peers. Our Global Leadership teammembers have a high engagement index of 16.5:1,
which shows the ratio of engaged to actively
disengaged leaders.
But engagement is more than just a survey; while ourannual engagement survey helps us measure andcreate an engaged workplace, it is part of our employee
listening strategy.

Feedback becomes powerful when we act on it, and weare creating accountability through an efficient process
driven by our people managers. Following the release of
the survey results, people managers are mandated toshare, cascade and discuss results within the company.
It is a team responsibility to be candid aboutengagement and select a number of areas to work on
and address with an action plan. In the months
following the survey, teams check on the progress of
their agreed actions, to course-correct when needed
and continue the conversation on engagement.

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SUPPLY CHAIN TEAM, BRAZIL
According to Marisa, the supply team in Brazil
embraces the company's culture and is inspiredby our values to deliver the best results every
day: "We focus on developing our team skills
and capabilities to enable continuous
improvement in our operations in an increasingly
challenging context. We have leaders who
promote initiatives to recognise our employees,
valuing the unique contribution that each one
can bring to the team, collaboratively. We arealso fostering diversity, equity and inclusion, sothat we can promote a work environment inwhich everyone can feel truly integrated and able
to contribute to our organisation. As a result, we
saw positive developments in our engagementscores related to management support andgrowth opportunities. We believe this is a daily
journey, that gets better with intentionality and apeople-centric mindset."

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Introduction

•

•

•

Global procurement team, the Netherlands
According to Evgeny, having highly engaged
employees is critical to success. When people
feel strongly connected to their teams, love theirjobs, and have positive feelings about thefunction, they are happy to stay and work hardto help the organisation, and their team,succeed. But when it doesn't go well, how doesa team respond?
Evgeny, who went through this process with his
global procurement team in 2021, says the firststep was to have meaningful conversations with
employees, creating emotional connections. This
enabled employees to understand how muchtheir success meant to the company, andenabled Evgeny and his team to understandwhat really matters to employees, what inspires
them, and what demotivates them. Based on
this, procurement implemented the following
activities:••

Strategy andvalue creation

Performance review
and outlook

They created a clear and compelling
Procurement Vision, aimed at engaging
employees and outlining a strategic direction for
their function
They transformed the organisation's design,
creating a range of attractive new jobs to help
people build their careers at JDE Peet's
They equipped their people with simple andeffective instruments to map career paths andbuild development plans to help them improve
They created a Procurement Capabilities
Framework, which helps employees obtain
valuable skills and become better professionals
Finally, they maintained a continuous dialogue
with employees through regular individual
conversations, procurement events, and regular
get-togethers to celebrate successes.
In 2023, procurement employees were far moreengaged than they were in 2021, with theengagement survey score increasing to 4.17
(2021: 3.71). The Procurement Leadership teamwas even more engaged with an overall score of
4.48 in 2023.

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The efficiency of the follow-up process is measured by
the Accountability Index, which is translated into three
additional survey questions: feedback was received;
action planning discussion was conducted; progress onaction plans was made since the last survey.
Every people manager in JDE Peet's has a performancetarget to achieve a score of 4 or more (on a 5-point
scale) on this index, and is evaluated on this target
through the annual performance appraisal.
To provide targeted support to our people managers,
we benchmark our team results internally and checkteam distribution over the team quartiles. This approachenables us to monitor team progress and follow theteam movements year on year.
The survey execution and process are guided by our
engagement playbook, which is available to HR andpeople managers across the company.

102

Our Learning & Development approach is distilled fromthe business strategy and is connected to other HR
processes, such as performance or careerdevelopment.
Our strategy combines centrally designed and deployed
development programmes and curricula with locallydriven initiatives and personalised learning plans our
employees build, based on their unique development
needs. We believe a strong development mix includes
70% on-the job experience, 20% learning from others,
and 10% formal training. We provide opportunities andinvest in programmes in all three areas, encouraging
employees to choose which offering is most suited totheir specific needs.

LEARNING & DEVELOPMENT
We empower and equip our people to be in the driving
seat of their own career and development. Improving
current capabilities and developing new ones leads toimproved performance and higher engagement, which
creates better business results.

The learning and development strategy for our people isstrongly connected to our career development
philosophy, and they discuss and review theirdevelopment plans at least three times per year with
their line managers.

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Performance review
and outlook

CAREER DEVELOPMENT AT JDE PEET'S
We have defined a Career Development Model tosupport employees on their journey and provide theright skills, tools and resources to develop their careerswith us.

Internally, and with the involvement of management andemployees, we have defined a set of leadershipcapabilities, functional competencies and criticalexperiences that offer orientation and guidance toeveryone looking to build a development plan and todevelop skills and capabilities for their next career step.

The Leadership Capabilities support our strategic
framework, further crystallising our HOW. While ourvalues define our collective behaviours, our Leadership
Capabilities define our personal attitude and ourintentionality. We expect every employee to act as aleader irrespective of grade, function or experience.
Leadership at JDE Peet's is a mindset, not a job title,
which is why Leadership Capabilities are relevant foreveryone.

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JDE PEET'S UNCONSCIOUS BIAS E-LEARNING
In 2023, we designed and implemented a JDE Peet's
unconscious bias e-learning, where employees
undertake different activities and interactive challenges
related to unconscious bias. Employees follow thecoffee journey from bean to cup, which helps themunderstand how they affect our day-to-day decisionmaking. This is followed by practical suggestions on
how to address such unconscious biases. The course
uses real-life scenarios from across the company thatconnect with each moment of the employee lifecycle.
We created the e-learning in the eight most commonlyused languages in the company: English, Dutch,
German, Portuguese, Russian, French, Malay andCzech. In many markets, this course is automaticallyassigned to new employees as part of the onboarding
programme, as well as being either assigned or
promoted to existing employees depending on theirlanguage. We also promote this course ahead of eachkey training programme as pre-work and at key
moments of our core processes, such as our
performance review or objective setting.

EMPOWERING OUR EMPLOYEES TO GROW
We equip our people with the right tools, technologies
and options to develop. In 2023, we introduced a new
Learning Management System (LMS) to enhance thesmooth operation and reporting of our learning
activities. The LMS provides deeper insights and a moreorganised structure, enabling us to effectively monitor
trends and the progress of our people. It is our onestop-shop for education and enhancing our employees’

Introduction

Strategy andvalue creation

Performance review
and outlook

knowledge, which is structured around four pillars:functional capabilities, leadership capabilities, people
management skills, and organisational culture, covering
topics such as coffee & tea, sustainability, DE&I andwell-being. It provides many opportunities for selfpaced learning, bite-size learning, webinars, elearnings, or in-person sessions.

LEARNING KICKS
Twice per year, we organise our Global Learning Kicks,
which are global virtual training events. In 2023, weoffered 73 webinar-format sessions, which saw a total
registration of nearly 1,500, representing 30 countries.

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These webinars are globally driven and cover a variety
of topics identified as relevant, based on in-depth
needs' discussions with the local markets. They areopen on-demand to all our English-speaking
employees, based on seat availability, and are followed
by local development initiatives in the local markets.
We also included several DE&I-related workshops aspart of the Q2 and Q4 Learning Kicks for employees
around the world. The aim is to continuously embed
DE&I within existing L&D frameworks, and provide
opportunities on top of local initiatives for employees toincrease their DE&I knowledge and continue fostering
an inclusive culture.

Migrating our LMS to the new platform
has opened up completely new
possibilities for us. We’ve gained neverbefore-seen autonomy over our local content,
can create new content with ease and provide it
to our associates at the press of a button. Not
only were we able to improve on quality, but wewere also able to expand our offering to all
associates in DACH and to connect 500 newusers as a result.

Jannes Kirchoff
Development Expert DACHJDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

OUR LEADERSHIP DEVELOPMENT JOURNEY
We strive for a culture of pride and performance. Each
year, leaders at all levels are engaged in a leadershipdevelopment journey with multiple touch points, toimprove leadership capabilities and prepare themselves
for the future. We offer several global programmes thatcater to the different stages and needs of the
management development journey.
The JDE Peet's Leaders' Journey

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Strategy andvalue creation

Performance review
and outlook

Key elements include self-awareness throughassessments and 360° feedback, training with worldclass facilitators and external speakers, complex
business simulations with observation and feedback,coaching and mentoring, practice and support ingroups with peers, planned actions and learning fromapplication and frequent reflection and feedback.
As part of the leadership development journey, we offer
external, professional coaching to our leaders through adigital coaching platform. In 2023, employees acrossthe world were able to choose their own International
Coaching Federation (ICF) certified coach, setting goals
and development areas in conjunction with their
managers.
Over the course of the year, there were 63 participants,
rating the programmes 4.5/5.

The programmes are designed as comprehensive anditerative learning journeys, with participants learningfrom personal insights, leadership frameworks andexternal industry experts, over a period of several
months.

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COMPANY-WIDE CULTURAL ALIGNMENT
In 2023, our leadership teams across the world
underwent an extensive cultural alignment programmecalled Breakthrough Global. During an 8 month period
between February and September, 1,313 of our leadersparticipated in one of the 18 sessions deployed aroundthe globe.
The sessions were highly interactive and had thefollowing objectives:• Align culture with strategy• Create high-performing teams and alignment• Unlock individual empowerment• Accelerate growth.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

PERFORMANCE MANAGEMENT
Performance management is guided by a global
playbook ensuring consistency and objectivity within
the company. We want to achieve sustainable results,
which is why it is important to meet businessexpectations and ensure that teams are engaged andfocused for the future. Each employee plays animportant role in contributing to the company goal.

Introduction•

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and outlook

At the end of the year, a formal evaluation of theemployee’s overall yearly performance takes place,with a calibrated outcome that has embedded
multiple data points and stakeholder feedback. The
calibration ensures that potential rating bias is
reduced and ratings are relative to performance
amongst peers, as well as being consistently applied
across the organisation.

PROGRESS IN 2023
In 2023, 86.0% of JDE Peet’s employees were in scopefor performance appraisal conversations. Our people
managers are committed to delivering high-quality
performance discussions that cover performancedevelopment, personal engagement and growth. To
ensure that all employees in scope receive theirobjectives and valuable feedback, these processes
have a 95% or more completion rate set as a KPI,
which allows room for local exceptions to be made incase of for example long-term absence.

Performance management is a continuous process,composed of three formal moments:••

Objectives are aligned at the beginning of the year
between employees and their direct managers andformalised through the objective-setting process.
During the year, we recommend that multiple checkins take place in addition to the formal half-yearly
check. These involve conversations between the
manager and the employee.

An important part of our performance management isdedicated to employees' development and growththrough the creation and follow-through of a continuous
development plan.
Our newly implemented L&D platform enables our
employees to easily search the learning catalogue andlink learning items directly to their development plans.
To monitor efficiency, we report on KPIs, ensuring weapply a DE&I lens where possible. During the evaluationof end-of-year performance data in 2023, deliberate

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efforts were made to review performance processes forpotential (gender) bias.

employee’s level of experience, scope of
responsibilities, location and performance over time.

REWARDS

Unless otherwise dictated under local collective
bargaining agreements, we review salaries annually inline with our pay for performance philosophy and toensure that we continue to pay competitively andequitably.

Our rewards philosophy reflects who we are and is a
key enabler of our entrepreneurial culture. Thisphilosophy is designed to be simple, effective andtransparent and supports us to:• Attract, engage, incentivise and retain coffee & tea
champions• Drive a high performance, entrepreneurial culture
where champions act as owners• Encourage collaboration, as an essential part of our
success.
Pay for performance is core to our rewards philosophy.
At the same time, our philosophy and key processes aredesigned to enable us to determine and distribute
rewards fairly, with regard to what each employee
brings to the table.
Whilst the actual components of employees’ reward
packages may differ by location, depending on local
market practice, regulations, applicable collective
bargaining agreements and other factors, there are key
guiding global principles to support our philosophy as
described below.

BASE SALARY
We aim to provide an equitable and market-competitive
base salary in order to attract, engage and retain coffee& tea champions. Salaries are aligned with the

SHORT-TERM INCENTIVES
In line with our focus on pay for performance, over twothirds of our employees participate in a short-term
incentive plan. The majority of these employees
participate in the annual bonus plan, which incentivises
and rewards the delivery of our annual businesspriorities. These priorities may include financial as wellas personal objectives that contribute to the delivery of
our financial plan.
For the employees participating in the annual bonus
plan, the financial performance measures are typicallythe same as those applicable to the executive Director
as described in the Remuneration Report section, as
follows, with targets aligned to the participant's area of
responsibility:• Net Sales, net of commodity inflation/deflation• Adjusted Earnings Before Interest & Tax (EBIT)• Average Operating Working Capital (OWC).

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

SHARE PLANSTALENT REVIEW & SUCCESSION PLANNING

Thinking and acting as owners is part of our company
culture. We offer senior leaders in JDE Peet’s theopportunity to participate in our share plans in order tobalance short- and long-term focus, incentivise longterm value creation and align their interests with thoseof our stakeholders.

The Talent Review & Succession Planning playbook
sets out global principles, defining roles andresponsibilities, providing an evaluation framework,
philosophy, communication materials, definitions andguidelines, as well as toolkits and templates for
executing the process to achieve its purpose. The
purpose of our Talent Review is to ensure we drive thefollowing outcomes:• Ensure we have the right leaders to deliver thebusiness agenda• Strengthen the leadership pipeline for the future• Foster talent movement across the company• Agree how we can best support the development of
our talent pool.

During 2023, we expanded the eligible population of our
Share Purchase Plan (SPP) to over 600 employees,
determined by band. Under the SPP, eligible employees
can choose to purchase shares in JDE Peet’s and,subject to holding these shares for at least three years,
receive one matching share from the company for every
three shares purchased.

OUR COMMITMENT TO EQUAL PAY
We are committed to all employees receiving equal pay
and treatment for carrying out the same work or work ofequal value. To ensure this is practiced throughout thecompany, we work with Mercer, a leading external HR
consultancy, to measure the impact of our pay policies
through periodic gender pay equity analysis. This
ensures both independent quality assurance as well as
the adoption of best-in-class methodology.
You can find more information in the Breaking Down
Potential Barriers to Women’s Empowerment section inthis chapter.

Our leaders own the talent review decisions, succession
pipeline and the development of their employees, andtogether with their teams, they are responsible for the
next generation of leaders, aligning their views andleveraging their strengths as a group to create growth
opportunities. DE&I considerations are embedded in thetalent discussions, ensuring that diversity in the talentpipeline and succession plan is visible and actively
highlighted throughout the process. Leaders focus on
their respective scope, with the minimum requirementthat all employees at manager level and up are part ofthe process. Expanding the scope to other employees
is based on local priorities. The process builds up fromlocal, to regional, to global reviews, ending with our
Executive Committee review of the company’s top
talent and their development steps, and succession for
mission-critical roles.

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Some of the data analytics reviewed as part of theprocess are for talent pools, talent retention andturnover, movement of talent, talent and succession
planning pipelines, and specifically for gender balance
within them.

PROGRESS IN 2023
In 2023, we leveraged the recently implemented talentand succession data and system capabilities to ensureorganisational readiness by shifting the focus towards
succession, resulting in a 55% increase in positions
with identified successors. Zooming into Director roles,
we continue to balance external hires with internal
development moves.
We are continuously looking for ways to strengthen thebench strength of our succession planning, and in 2024
one of the areas we’ll test, is the creation of global
talent pools for similar functional Director positions,which should provide more flexibility for internal
assignments.
Our employees are at the centre of the talent review
discussions. Thanks to a targeted campaign with
employees sharing their view on being in the driving
seat of their own careers, in 2023, 91% of ouremployees in global scope provided the company with
their inputs on their talent profile.
We support our employees through their lifecycletransitions, including preparation for retirement. This isdone through local programmes and aligned withmarket-specific legislation. For example, in the

Netherlands, we have various measures in place, suchas reduced working hours prior to retirement, part-time
pension, a pre-retirement course, or tax and financial
advice.

DIGITALISING THE EMPLOYEE LIFECYCLE
We recognise that in a hybrid and increasingly digitalworld, we need to continue to invest in having the righttechnology that can support our employees and provide
them with an engaging user experience and ourmanagers with actionable insights through data.
In 2023, we continued to optimise our global system for
managing performance, development, talent review andsuccession planning.
We expanded the key metrics we extract, thus enabling
us to drive the right decisions across the organisation.
We built on this with the launch of a people analytics
tool for HR to further support the business in answering
their people and organisation questions, and to drive
impact where it matters.
We launched additional listening tools for moments thatmatter, to help us understand if employees are getting
the necessary onboarding to be successful, as well as
why employees leave the company. The onboardingand exit surveys now provide the company with insights
into how to improve the engagement of our new joiners
for a successful start at JDE Peet’s, and what the main
reasons are behind voluntary turnover in the company.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

OUTLOOK
In 2024, we aim to focus on raising awareness of JDE
Peet’s as an employer of choice. We will engage
external talent, as well as internal employees, with our
employee value proposition through online and offline
channels. By leveraging our employer branding
narrative and showcasing action-to-impact local stories,
we aim to increase internal engagement, especiallyaround the topic of the importance of our day-to-day
work, and to attract external talent that would find a fit
in our entrepreneurial environment.
In 2024, we plan to continue investing in the power ofteams by driving a team development framework. This
will consist of a wide range of activities designed to
improve overall team performance and build highperforming teams. We know from research that teams
make better decisions, produce more innovative ideas,
and implement them faster than individuals working
alone, making effective teamwork a competitive
advantage.

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JDE Peet's N.V.
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JDE Peet’s
at a glance

WE STAND TOGETHER IN OUR
DIFFERENCES
We believe in fostering a more diverse, equitable andinclusive organisation where everyone feels comfortable
to truly be who they are and unleash their full potential.
By reflecting the world we live in, we are better able toserve our increasingly diverse consumer base anddeliver on our vision “A coffee & tea for every cup”.
And by living our values, we make sure that we are anorganisation free of potential barriers, where each
employee takes responsibility to progress ourcommitments and where we stand together in our
differences.

OUR GLOBAL APPROACH TO DIVERSITY, EQUITY,
AND INCLUSIONAt JDE Peet's, we share a common understanding ofwhat diversity, equity and inclusion (DE&I) means for us
as a company:• Diversity describes the parts we all bring as anindividual or group that make each of us unique.
Diversity is the blend that demonstrates therepresentation we collectively bring and that defines
who we are as a company.
• Equity is about fostering fair access, opportunity
and advancement for all and being supportive ofdifferences. Equity is also about identifying and23

See the Our strategy section of this report for more information.

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and outlook

eliminating potential barriers that may hinder fair
access and opportunities.
Inclusion is the conscious act of creating a culture ofbelonging, where all employees can be their true
selves and are celebrated for who they are. Inclusion
is also about listening, learning and making thevoices of everyone heard. It requires each of us totake active steps to counteract potential biases andstereotypes.

We recognise DE&I as a key business enabler, and oneof our most material topics as it contributes to eachpillar of our strategy23:• Serve more cups, by increasing our ability to reflect
our consumers so we can attract and retain them,and capture new markets• Master execution, by leveraging diversity ofthought to further improve our decision-making andproblem solving• Grow together, by attracting, engaging andretaining the best talent, regardless of who they are.

OUR GLOBAL DE&I POLICYPROGRESS IN 2023
We introduced a global DE&I Policy in 2023, expanding
on our existing Board Diversity Policy, which underscores
our commitment to our employees, provides more explicit
guidance internally to our change makers, and meets thegrowing expectations from our external stakeholders. The
policy explains how we define DE&I within the company,

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sets out our approach under the DE&I strategic
framework, and details how we monitor and report on our
progress. Together with our DE&I strategy, it constitutes
the basis for the deployment of DE&I throughout theorganisation. The policy relates to our ambitions on
gender equality and, specifically, gender representation
within the Board, the Executive Committee and otherleadership positions. It also states our commitment to pay
equity and non-discrimination, the latter reinforcing our
Code of Conduct and Speak Up Policy.
The policy applies to employees, directors and officers
of JDE Peet’s. The CEO is accountable and the Chief
HR Officer is responsible for the policy's
implementation. The Remuneration, Selection andAppointment Committee of the Board review the policy,
including its effectiveness, and recommends asappropriate, any revisions to the Board for approval.
The policy contributes to the United Nations Sustainable
Development Goal #5 on Gender Equality and is in linewith the Dutch Corporate Governance Code.
By setting this policy, we recognise the interests of ouremployees in being part of a diverse workforce that
represents the world we live in, in being able to accessequal opportunities and in being able to be their true
and authentic selves. We also recognise the interests ofour stakeholders, as DE&I contributes directly to eachpillar of our business strategy.
During the year, we also launched our internal TrueYOU
hub, which states our DE&I strategy and story and109

contains a library of resources, video recordings, andimages of past global activations. This ensures all our
employees have easy access to this information and areaware of, and aligned with, our stance and vision for
DE&I globally.

OUR GLOBAL FOCUS AREAS AND MATURITY
MODEL FOR LOCAL ACTIVATION OF DE&I
To ensure we are on a journey towards a common goal
globally, while acknowledging local differences, wehave selected two global priorities:
1. Break down potential barriers to women's
empowerment
2. Value differences to ensure our employees can be
who they truly are.
We bring awareness on these priorities to all our
employees globally, in part through our three global
activation moments:• Gender Balance Month in March, when we
recognise the importance of achieving genderbalance and equity and use International Women’s
Day as a ‘kick off’ for these discussions.
• Pride Month in June, when we recognise LGBTQ+
people globally by amplifying their voices,supporting their rights, and celebrating their culture.
• TrueYOU Week in October, where we actively
advance the awareness of DE&I across JDE Peet's
globally, with an intersectional lens and a focus on
inclusion.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

PROGRESS IN 2023
The local activation of our global DE&I strategy is driven
by more than than 270 DE&I champions and employee
resource group members globally. In 2023, this was 28
more than 2022. Every market, site or local country
team is empowered to define their local focus areas
which fit their social or legal context.
In 2023, we launched the second version of our DE&I
activation toolkit, initially launched in 2021. This toolkit
outlines a pragmatic and systemic approach for local
DE&I activation, and is based on a maturity model
structured in four stages (see figure). The updated
toolkit provides more clarity on deliverables of stages 1
and 2, more in-depth guidance and further internal casestudies to instill best practices. This enables ourmarkets and sites to be fully equipped to activate DE&I
locally with optimal guidance.

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Stage 1: Initiate
We expect three key outcomes:
1. All key stakeholders to clearly articulate the case forchange and the business impact
2. Commitment demonstrated and accountability
established for key stakeholders
3. Awareness achieved across the market/site via
training and development.
These outcomes enable us to create a solid foundationand set the local market/site up for success with theright structures, commitment and tools.
In practice, we measure progress by identifying whether
some key deliverables have been attained, such as:• Assessment of gender status based on existing data at
key stages of the employee life cycle, and potential
next steps to improve and/or sustain progress.
• General Manager, Management Team and change
makers utilise multiple channels (town halls, events,
workplace, business/team meetings) to regularly
promote the global and local DE&I approach to
employees, and demonstrate their commitment andaccountability for progress.
• At least one local activation for each of the global
calendar moments (Gender Balance Month, Pride
Month, TrueYOU week).
• One DE&I sponsor from the Management Team, one
DE&I champions lead, and ideally a number ofchampions.
• More than 80% of local Management Team
members have completed JDE Peet's global
Inclusive Leadership training programme.

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Stage 2: Embed
We expect three key outcomes:
1. Change initiated in stage 1 to be embedded into our
structures (not just in isolation)
2. DE&I strategy (informed by data) agreed on by key
stakeholders
3. Leaders consistently demonstrate inclusion andarticulate the actions and behaviours expected ofothers.
These outcomes help ensure that transformationalchange is sustained across the workforce andworkplace pillars of our global strategy, while
establishing accountability for delivery of the strategy
and KPIs, and to measure our progress.
In practice, we measure progress by identifying whether
some key deliverables have been attained. For instance:• Data points are collected to inform action/
improvements via local surveys (>40% participationrate), focus groups/listening sessions conducted per
diversity dimension.
• Locally relevant dimension(s) of diversity have been
determined as long-term strategic priorities andinclude KPIs to assess progress.
• Global/local DE&I strategy is included in the local
onboarding programme and employees are aware of
the role they play, and how they can get involved.
• At least 10-15 champions, representing all functions
and areas and the establishment of one employee
resource group (ERG) per long-term priority.
• Management seek 360° feedback as part of theirdevelopment plan from a diverse group, including

their team, share results with their team, and include
in individual action planning.
At the end of 2023, we had reached a completion rateof over 98% for stage one (an 18 bps increase
compared to 2022) and over 33% of stage two acrossall markets (a 33 bps increase compared to 2022).
We activated DE&I across our 18 manufacturing plants
in Europe and Brazil by making plant leaders, alongside
their HR site manager, responsible for driving DE&I
within their plant. Each plant leader acts as a sponsor
and has been invited to be part of the global change
makers community and join the bi-monthly Change
Makers Circles. They follow guidance in the DE&I
activation toolkit.

BREAKING DOWN POTENTIAL BARRIERS TO
WOMEN’S EMPOWERMENTPROGRESS IN 2023
Reinforcing our commitment to contribute to the United
Nations Sustainable Development Goal #5 on Gender
Equality, we are proud to have joined the UN Women’s
Empowerment Principles in 2023. This will help us
accelerate the progress we’ve been making in ensuringthat employees from all genders feel equally empoweredto thrive at JDE Peet’s. The United Nations Women's
Empowerment Principles aim to help companies evaluate
their practices, projects, and policies related to genderequality, and they help us reinforce our commitment
towards our employees and external stakeholders.

JDE Peet's N.V.
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JDE Peet’s
at a glance

We believe that employees from all genders should feel
equally empowered to thrive and have the opportunity
to grow into leadership positions. Our ambition is toensure the representation of women in leadership
positions reflects the percentage of women in our total
workforce, and at the start of 2022 we established amilestone to reach 40% of women in leadership
positions by 2025. By the end of 2022, we had alreadyexceeded this commitment, with women holding 41.0%
of our leadership positions across the company and we
maintained this in 2023, with 41.3% of leadership
positions within the company held by women at year
end. This KPI is under limited assurance through theaudit performed by Deloitte.
Gender ratio

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this partnership, our community of change makers,
champions and ERGs, as well as our global HR
community, benefits from access to tools and resources
aiming to support them in their actions related togender equality and DE&I.
We do not tolerate discrimination on the basis of genderor any other identity trait, as stated in our Code of
Conduct, and in 2023 we decided to take more specificaction on this topic by undertaking a comprehensive
global campaign on moral and sexual harassment
situations and other types of discrimination. This
campaign included global communications and a global
e-learning course Creating a Respectful Workplace.
Similar campaigns were conducted in some of ourmarkets.
In 2023, for the second consecutive year, we measured
our commitment to a respectful workplace through ourglobal employee survey, asking our employees whether
they feel respected at work. We are proud to report that
we reached a score of 4.37 on a scale of 1-5 (4.34 in2022), with no significant difference in the result
between men and women.

In 2023, we became a global supporter of Catalyst, a
global non-profit organisation supported by many of theworld’s most powerful CEOs and leading companies tohelp build workplaces that work for women. ThroughGovernance andrisk management

We believe that equal pay is key to fostering diversity,
equity and inclusion and ensuring that all genders feel
equally empowered. This is why we are committed to all
employees receiving equal pay and treatment forcarrying out the same work or work of equal value. To
ensure this is practiced throughout the company, we
work with Mercer, a leading external HR consultancy, tomeasure the impact of our pay policies through periodic

gender pay equity analysis. This ensures both
independent quality assurance as well as the adoptionof best-in-class methodology.
In March 2023, we were very proud to share thefindings of our analysis with employees globally, whichshowed that across the company the pay difference
between men and women is less than 1%. This level ofdifference places JDE Peet’s among industry leaders inthis space and falls significantly under the EU directive’s
threshold of 5%. We are pleased that our focus ondelivering equal pay across the company is proving
successful, and going forward we will remain committed
to regularly monitoring our practice in this area tocontinue to promote fair and equitable pay across JDE
Peet’s.
On a local level, our DE&I champions and ERG
members have helped deliver a range of DE&I initiatives,
including on gender equality and women’s
empowerment.
• Our French organisation celebrated a score of
95/100 on the French gender equality index, up two
points compared to 2022. This index is a practical
tool for improving gender equality with regards to
pay and promotions within companies. This result
keeps our French team above the average of French
companies (88/100) and in the leading group of foodcompanies.

JDE Peet's N.V.
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•

•

•

JDE Peet’s
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Our team in Ukraine implemented a maternity leave
toolkit that offers comprehensive support for
employees throughout their maternity journey,
including before, during, and after maternity leave. It
encompasses various components, such asrecommendations for completing work tasks before
childbirth and an introduction to the maternity
community.
In Singapore, the team hosted a panel discussion on
Women in Leadership, featuring accomplishedpanellists from diverse backgrounds, including Lara
Brans (President of APAC region), other leadershipteam members and external speaker Ms. Teri Liew.
They shared their experiences and insights on
women's leadership, allyship, and the essential skills
that define an inspiring female leader.
During Gender Balance Month, the Belgium teamorganised a compelling challenge, encouraging
colleagues to complete the Everyday Sexism elearning from our L&D Café. This training addressed
everyday scenarios of sexism and ways to takeaction or become allies. A total of 92 employees
participated in this challenge, reinforcing thecommitment to gender equality, and, as a result, we
did a donation to a charity that brings awareness togender equality.
In light of their solid journey on gender equality, ourBrazilian organisation was invited by Forbes
magazine to be part of its March special edition witha branded content on the important role of womenin the world of coffee, with the participation of thesix female leadership team members, and quotes
from the country General Manager. JDE Peet's

Introduction•

Strategy andvalue creation

Performance review
and outlook

Brazil has achieved gender equity in seniorleadership positions, where women make up 54% of
the leadership team.
Peet's Coffee in North America increased awarenessof women's empowerment by organising a
discussion panel in celebration of Women's History
Month on the theme of Women in leadership. The
panel was hosted by and featured three Peet's
Coffee female leaders.

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JDE Peet's N.V.
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JDE Peet’s
at a glance

VALUING DIFFERENCES AND FOSTERINGAUTHENTICITY

Introduction•

At JDE Peet’s, we are committed to promoting an
inclusive culture where every employee feels they truly
belong and feels comfortable to be themselves.

PROGRESS IN 2023
In 2023, this commitment was measured for the second
time through our global employee survey, when we
asked employees whether they feel comfortable to bethemselves at work. We reached a score of 4.26 on ascale of 1-5 (4.22 in 2022), with no significant difference
between men and women overall.
Throughout the year, we saw the largest number ofactivations to date during our three global activations
moments – Gender Balance Month, Pride Month and
TrueYOU Week.
During TrueYOU Week, we organised a live global eventon the theme of Bridging the multigenerational gap in
the workplace, when 730 employees from all over theworld dialled in to be inspired by a keynote talk from anexternal global DE&I thought leader.
Locally, every market is empowered to define their own
priorities by understanding the local social and legal
context and identifying the needs of employees.

24
25

•

•

•

•

Strategy andvalue creation

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Our DACH24 markets celebrated Pride Month byshowing allyship for the LGBTQ+ community inmany different ways. Activations included pridevisuals and giveaways in all offices and plants. In
Bremen, JDE Peet’s was an official sponsor andparticipant of the local Pride Parade, helping raisingawareness both externally and within ourorganisation.
At our Utrecht plant in the Netherlands, we installeda Pride crossing25 sending the message to ouremployees that JDE Peet's is a safe haven for the
LGBTQ+ community.
In Thailand, 90% of employees joined a local Pride
Month event both on-site and online, in the market
and manufacturing unit.
During TrueYOU Week, the Brazil team organised an
engaging webinar on Unconscious Biases,
presented by Youleader. Participants had theopportunity to apply the lessons they learned in our
JDE Peet's unconscious bias e-learning anddiscover how to reduce potential daily biases. This
event was a success with 139 participants and a net
promoter score (NPS) of 83%.
At our international headquarters in the Netherlands,
over 57 nationalities are represented and therefore
cultural diversity is one of the DE&I priorities. This iswhy, in October, our DE&I champions celebrated
cultural diversity as they hosted two events, eachattended by more than 100 employees.

The DACH region refers to Germany, Austria, and Switzerland.
A rainbow crossing or rainbow crosswalk is a pedestrian crossing that has rainbow flag artwork installed to celebrate the LGBTQ+ community.

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At Peet's Coffee in the United States, we held apanel discussion during Pride Month, based on theimportance of creating inclusive environments. The
discussion highlighted challenges within the
LGBTQ+ community with a focus on suicide
prevention.
Raising awareness and representation on the topic
of race and ethnicity, Peet's Coffee activated Black
History Month with a panel discussion on the
progress that the Coffee Coalition of Racial Equity(CCRE) has made and the impact it has had throughprogrammes such as NKG’s Partnership to Advance
Coffee Equity (PACE).

OUTLOOK
In 2024, we will activate our next global focus area on
DE&I. The decision on which direction to go will bebased on input from our change makers around the113

world. As part of stage 2 of our maturity model, ourchange makers will need to define locally two or three
long-term focus areas for their DE&I strategy, which
would be dependent on local context and input from
employees. We will then select the focus area based on
the topic that is most highlighted across the company.
To better understand the diversity of our employee
base, we will develop a global plan to collect additional
demographics, such as people with disabilities andother locally relevant diversity dimensions. This data will
be key in informing long-term local strategies and KPIs
for DE&I.
Finally, to continue our journey of activating DE&I
across our business, we will expand the activation of
DE&I beyond our Europe and Brazil plants to plants
across the rest of the world.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Strategy andvalue creation

Introduction

Performance review
and outlook

Governance andrisk management

THE NETHERLANDS

HQ - THE NETHERLANDS

•

•

•

Ambitions defined on
gender balance for eachpart of the business
Launch of the Pridecrossing at our factory in
Utrecht

Financialstatements

Cultural Diversity Monthactivities by the Cultural
Diversity Employee
Resource Group (ERG)

114

Supplementary
information

GERMANY, AUSTRIA,SWITZERLAND•

First cluster-wide Pride
Month activation

POLAND AND BALTICS•BELGIUM•

PEET'S•

Panel discussions during
Women History Month,Black History Month, Pride
Month and AAPI (Asian
American and PacificIslander) Heritage MonthE-learning challenge toraise funds for a non-profit
organisation advocating for
gender equality

FRANCE••

Score of 95/100 for JDE Peet’sFrance on the French Gender
Equality Index
Long-term strategy defined on 3
pillars: equal chances, genderbalance and multi-generations

THAILAND•UKRAINE••

Launch of a Veterans
Toolkit to support war
veterans
Launch of a maternity &paternity toolkit to support
new parents

BRAZIL

EXAMPLES OF DE&I
INITIATIVES FROMACROSS THE WORLD

Design and delivery of an
inclusive cultural training by
the General Manager••

Forbes magazine featureof JDE Brazil female
leaders
Launched second census
survey (anonymous),
gathering demographic
data and crossing thosewith inclusion questions

ITALY
•

Webinar with Arcigay
experts to deep dive in the
LGBTQ+ community,
reaching all employees

SINGAPORE•

Panel on 'Women in
Leadership' with JDE
Peet’s female leaders

Pride Month event
exploring LGBTQ+ diversity

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

JanuszIntroduction

Strategy andvalue creation

Nolwazi

Performance review
and outlook

Karel

Governance andrisk management

Financialstatements

Laura

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information

SamuelMaria

KaWingENGAGEMENT IS UNIQUE TO EVERYONE – AND EVERYONE IS UNIQUE!
HOW DOES BEING MYSELF ENABLE ME TO BE MORE ENGAGED AT WORK AND TO REALISE MY FULL POTENTIAL?

WHAT ROLE DO I PLAY IN MAKING MY COLLEAGUES FEEL COMFORTABLE BEING THEMSELVES AT WORK?

KaWing Lau

Nolwazi Tshabalala

Janusz Idczak

Laura Wang

Supply Chain Manager, New Zealand

CIC Coordinator, South Africa

General Manager Poland & Baltics

HR Specialist, China

I show everyone my true nature, and show mywhole team that you can be yourself at work. I
care that people have the space to express
their opinions. I do my best to help our people preservea good work-life balance. And finally, even if sometimes
being authentic leads to exposing our weaknesses andfailing, we treat this as a source of learning, nothing
more.

As HR, we listen and use empathy and curiosity
to cultivate deep and meaningful connections
with our colleagues. By cultivating a DE&I
culture, we help people managers address any
unconscious bias that could shape their decisions,
helping to create a culture in which everyone feels
empowered to speak up, feels respected and valued,
and does their best every day.

Karel Skvain

Samuel Silva

Plant Director Valasske, Czech Republic

HR Intern, Brazil

Coming to work every day is a real joy. Being
myself means I can have genuine interaction
with others across the business, I get to enjoy
the day to its fullest, and I also experience thosemoments of inspiration and real collaboration that only
come from being in a safe and comfortable space.

Maria Collarte

I bring energy into every room I enter, and thisis what helps me truly engage with mycolleagues and my friends. This also helps me
involve everyone in the workplace, because
team work does dream work!

Global Marketing Manager, Senseo
Honestly, I only know how to be myself. In my
personal life or at work, I believe that to be
happy you need to be true to yourself and to
your values. And at the end of the day, when you are
happy, in this case at work, you see life in a different
light.

We all play our part, and everyone is unique.
And this is just great, because this is what
creates a unique environment and creates JDE
Peet's.

My role and my function is to help my coworkers feel comfortable about being
themselves, to embrace diversity, and to bekind and welcoming to people without anyone
feeling excluded.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

ENGAGING OUR COMMUNITIESHOW OUR PEOPLE ENGAGE WITH COMMUNITIESWITH A BIG HEART
For many, coffee & tea are an integral part of everyday
life, providing warmth and connection for moments big
and small. JDE Peet's is a proud member of local
communities around the world. Just as we believe "It isamazing what can happen over a cup of coffee & tea",
we also believe it is our responsibility to bring people
together, engaging and connecting with our local
communities to offer our help, time, skills, warmth andbe part of the change for a more supportive andbrighter future. Around the world, in 2023 ouremployees continued to take action to provide support.
Some of their stories are outlined below.

Introduction

Strategy andvalue creation

Performance review
and outlook

COMMUNITY AND ENVIRONMENTAL SUSTAINABILITY:
China: Cultivating community roots through public
tree planting
The village committee of Wuxi Xishan districtorchestrated a community-wide initiative, bringing
together individuals from diverse backgrounds toengage in public welfare tree planting activities. The
event fostered a collaborative effort to contribute to thewell-being of the community and the environment.
Brazil: Community development and support in
Piumhi and beyond
Partnering with Gaia Social NGO, JDE Peet's' initiatives
in Piumhi and the surrounding region focus onenvironmental education, selective collection,awareness campaigns, and sustainability. For example,
the success of the Agenda Canastra Sustentável
programme, recognised with the ECO Award 2022,
highlights the company's commitment to socioenvironmental development. In response to natural
disasters, such as the 2023 floods in São Paulo, JDE
Peet worked to provide aid to affected communities,
such as donating 248,000 cups of Pilão coffee to theJundiaí Solidarity Fund. The company's consistentcontributions play a vital role in social actions,benefiting communities, hospitals, and social funds.

Governance andrisk management

Financialstatements

Supplementary
information

Czech Republic (Valasske): Nurturing community life
in Valašské Meziříčí
Our Valasske plant supports two local charitableorganisations annually, providing CZK 50,000 to eachcharity. Diakonie Citadela, a care facility for the elderlywith special needs, received funds for a high-capacity
clothes dryer. Charity, with a broader community role,assists homeless and addicted individuals and families
on society's edge, allocating funds for specialised
equipment in bathrooms. Our plant has backed
Valašské Meziříčí's largest children's playground for 15
years, contributing CZK 200,000 annually used for new
play equipment. JDE Peet's also supports activities led
by employees in various associations or communities,
distributing a total of CZK 162,000 among nine
programmes in 2023.
Singapore: Sharing festive joy through food andcoffee donations
We actively participated in supporting our community
by donating and preparing 100 food packs for the
residents of Geylang Bahru during the Chinese New
Year festivities, contributed 300 packs of coffee andcereal, and organised a dedicated food donation andpacking drive.

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JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

CHILDREN'S WELL-BEING:
Brazil: Empathy in action - Providing bicycles andjoy to children
In May 2023, JDE Peet's Brazil organised aheartwarming event for 53 underprivileged children
supported by the Casa da Fonte Association, backed
by the Jundiaí Social Solidarity Fund (FUNSS), providing
each of them with a bicycle. This initiative took root inMarch during the Engagement event with Brazil's
leadership, focusing on fostering teamwork and the"Delight the Consumer and Shopper" attitude. The
team, comprising nine groups, was assigned the noble
task of assembling bicycles for children recommended
by Casa da Fonte. Discovering that only 9 out of the 53
children were initially selected, our compassionate
employees took it upon themselves to ensure inclusivity
and happiness for all, collectively deciding to purchasethe remaining bicycles. This gesture exemplifies their
dedication to making a positive impact on the lives ofthese children.
South Africa: Spreading Christmas joy
Annually, the Santa's Shoe Box Project distributes gifts
to orphans and underprivileged children in the Southern
African region. In 2023, our 35-strong team in South
Africa contributed 100 gifts to children in need. Eachgift is thoughtfully curated, containing essential items
such as clothing, a toy, a treat or sweet, school supplies
and stationery, as well as oral care and personal careproducts. For many of these children, this gesture
represents their sole gift for the entire year.

Introduction

Strategy andvalue creation

Performance review
and outlook

Ukraine & EECA: Celebrating children's day with
acts of kindness
We commemorated Children's Day on 1 June 2023 witha focus on upholding the rights of children worldwide.
As part of our corporate social responsibility
commitment, we made substantial donations to various
orphanages, including contributions to the orphanages
in Pryluky and Sosnytsia region in Ukraine. Our
approach involved inquiring about their specific needs
and fulfilling them, providing items such as toys,
pyjamas, and beds. Our team personally visited the
Pryluky orphanage, where the children prepared a
special concert for us and other patrons. Additionally,
our efforts extended to the Solnyshko Children's Homein Kazakhstan, where we provided art kits, stationery
supplies, hula hoops, board games, nappies, andfulfilled the children's requests for swimming caps andtraining boards. In Belarus, our support was directed to
the Slutsk Specialized Children's Home, while inGeorgia, we presented toys, sweets, clothing, andessential care items to orphaned children at the Tbilisi
Children's Home.

Governance andrisk management

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information

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JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

SOCIAL CONNECTION AND VOLUNTEERISM:
Australia: Volunteering at a community foodbank
In a proactive initiative, 10 of our employees
volunteered for a day at Foodbank in West Sydney, afood bank that plays a crucial role in helping more than
337,000 households in the city each month. The
organisation depends heavily on the support of foodproducers and volunteers to operate smoothly andaddress hunger issues.
Spain: Breakfast against loneliness - JDE Peet's
contribution to social connection
At JDE Peet's in Spain, we decided to support San
Juan de Dios in their mission against loneliness byorganising a charity breakfast, aimed at raising funds for
projects addressing this important issue. The event
successfully raised almost EUR 500, which JDE Peet's
matched, resulting in a total donation of EUR 1,000.
DACH: Uplifting local communities with hot coffee
and conversation
In Bremen, where JDE Peet’s has its German offices,
the Bremer Tafel food bank has been collecting anddistributing food to those in need since May 1995, withapproximately 250 locals visiting every day. For the past
eight years, our people have been offering the Bremer
Tafel their time and help. What began as an informal
volunteer programme in 2015 has grown into an
initiative in which every JDE Peet’s employee inGermany has the opportunity to participate. Eachmonth, a group of employees visits the food bankduring their workday.

Governance andrisk management

Financialstatements

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information

UK&I: Engaging communities through volunteerism
and charitable initiatives
During 2023, our people in the UK & Ireland participatedin various volunteer events, dedicating their time tosupport a range of organisations. During Volunteers'
Week in June, the team organised impactful events,
including GroceryAid's Windermere Row and engaging
awareness talks. The collective commitment to charity
was evident, with an office clear-out raising £800 for
GroceryAid and Alzheimer's Society. Additionally,
successful student-led charity events contributed funds
to diverse charitable causes. Demonstrating a profoundcommitment, employees in the UK & Ireland maximised
their two paid volunteering days, with an impressive 53
employees collectively contributing 225 hours tovolunteering efforts during the year.
The Netherlands: JDE Peet's NL volunteer week uniting colleagues for social impact
The objective of 'Brengt bij elkaar' (Brings together)week is to foster unity among colleagues while
engaging in meaningful social projects. In December,
240 of our Out-of-Home employees in the Netherlands
each dedicated four hours to volunteer work at various
client locations, including elderly homes. Examples of
the activities they undertook include taking walks withelderly individuals, canoeing with refugees and playing
games with the elderly.

118

Norway: Friele supporting communities in Norway
through a long-lasting partnership with the Church
City Mission.
Friele's partnership with the Church City Mission, a nonprofit organisation aiding those facing life challenges,
began in 2007, with Friele contributing coffee to theircafés and initiatives. In 2023, Friele donated over 1
million cups of coffee, emphasising its commitment tosocial impact. JDE Peet's Norway encourages
employees to actively participate by volunteering for a
day at cafés or initiatives led by the Church City
Mission, and in 2023, 85 employees participated.
Peet's Coffee: Connecting communities - More thanjust coffee business
At Peet’s, each of our 202 coffee store locations
actively engages and connects with communities
across the United States. For instance, Peet’s
Bridgeport Village volunteers at the Oregon Food Bank,
where in 2023, employees boxed 5,000 cans for families
facing food insecurity. And in Southern California,
Peet’s Seal Beach donated coffee to local schools asteachers prepared to return to the classroom in August,supporting their first day back.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

DELIGHTING AND PROTECTING OURCONSUMERS WITH EVERY CUPIntroduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

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Supplementary
information

FOOD SAFETY AND QUALITY
Food safety and quality are our primary focus, and thefoundation upon which consumer and customer trust isbuilt.
JDE Peet’s is committed to the design, procurement,
manufacture and delivery of safe food products whichmeet consumer and customer expectations. To help
achieve this, JDE Peet’s has established a comprehensive
company-wide Quality Management System (QMS) anddeveloped high food safety and quality standards acrossthe organisation and along our supply chain. Thesesystems and standards are based on regular reviews ofindustry standards, product defects and the study of
product retrievals throughout the food industry.
Our QMS applies the internationally recognised HACCP(Hazard Analysis and Critical Control Point) system toensure food safety. This preventive and science-based
system identifies, evaluates, and controls hazards thatare significant for food safety. Our HACCP plans andsystems are reviewed annually. These standards areapplied globally and are verified by both external
certification bodies and an internal auditing team.
JDE Peet's is a member of the Consumer Goods Forumand promotes adherence to the Global Food Safety
Initiative (GFSI) standards, with the ambition of reaching
100% internal and key suppliers certified by 2025. As aconsequence, our JDE Peet’s Quality Management
System is verified annually by an external certificationbody on FSSC 22000, a programme recognised by the
GFSI.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

No non-conformances were identified during the 2023
audit. By the end of 2023, 85% of our internal andexternal manufacturing sites were GFSI-certified.
In addition to our certification approach, JDE Peet’s
Quality has developed a highly skilled auditing team to
perform internal audits and ensure we bring internal andexternal practices to the highest level of food safety andquality.
We manage food safety and quality from the field to theconsumer’s home. We carefully check all incoming
materials, processes and products in our factories,
while carrying out thousands of analysis per year on our
raw materials and, at different stages of the process,ensuring full compliance to our quality, food safety andregulation standards.
At the core of our commitment to customer satisfaction,
we place immense value on consumer and customer
feedback. Our well-established global consumer callcentre serves as the primary point of contact forinquiries, feedback, and concerns, playing a pivotal rolein shaping the overall customer experience andfostering loyalty. Handling hundreds of thousands ofcontacts annually, our consumer call centre is a key
driver in strengthening consumer loyalty and propelling
our continuous improvement initiatives forward.

Introduction

Strategy andvalue creation

Performance review
and outlook

PROGRESS IN 2023
We took a number of steps forward in 2023, including:• We strengthened our Issue & Crisis Management
programme, introduced mandatory e-learning
modules for all employees, and trained over 100
employees within the company on processes forprevention, preparation, response, and learning.
• We revamped our internal auditing programme toenhance adherence to our QMS system and actively
promoted GFSI compliance among new suppliers.
• We remain committed to embracing newtechnologies to mitigate emerging risks andenhance our traceability capabilities. This includes
implementing an error-proof loading system andintegrating SAP with our WMS.
• We seamlessly integrated our Supplier Quality &Food Safety management system with SAP tosafeguard our supply chain and prevent inadvertentsourcing of non-approved materials.
• We deployed our customer feedback monitoring ona global scale, and consumer insights on productquality and safety are embedded into our strategy
and business model.
• We made significant investments in the training anddevelopment of our employees who work on quality.
• For the first time in 2023, our strategic focus was on
conducting quality and food safety culture
assessments to fortify these crucial aspects within
the organisation, enhancing our overall quality
culture.

Governance andrisk management•

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We successfully hosted the inaugural edition ofFood Safety Day and Quality Week.

In 2023, our consumer complaints reached its lowestever level, showcasing the effectiveness of our quality
management system. This led to a notable 10% drop in
total complaints. No product-related issues, food safetyconcerns, or regulatory non-compliance were identified.
To track the effectiveness of our actions, quality results
are shared monthly with the Executive Committee.

OUTLOOK
Looking ahead, we are on track to meet our 2025 targetof 100% of our manufacturing sites with food safety
certifications. In 2024, we plan to:• Address ingredient sourcing and supply chainpressures by establishing strong relationships withreliable suppliers, conduct thorough quality audits,
ensure a robust traceability system, and leverageinternal and external monitoring.
• Continue to keep pace with evolving food safety
regulations and expand our presence in tradeassociations to gain support for regulatory scouting,while investing in risk mitigation measures.

JDE Peet's N.V.
Annual Report 2023••

JDE Peet’s
at a glance

Deliver on consumer expectations throughcontinued transparency, as the quality and safety of
products increasingly drive trust and preference
among consumers.
Roll out fit-for-purpose food safety and quality
standards, and agile risk assessments for our
diverse route to markets, from retail, café, to direct
and consumers.

GSFI certification result 2023

By addressing these challenges proactively, andcontinuously improving food quality and safety
practices, we enhance consumer trust, protect brandreputation, and more effectively meet regulatory
requirements.

26

Introduction

Performance review
and outlook

NUTRITION
Our purpose is to unleash the possibilities of coffee & tea
to create a better future. Drinking coffee & tea inmoderation can be enjoyed as part of a healthy diet. A
healthy diet should optimise health, defined broadly as
being a state of complete physical, mental and social wellbeing, rather and not merely the absence of disease26.
Coffee & tea can play a role in all these aspects of health.
Coffee is not only one of the most consumed beverages
in the world, but also one of the most researched partsof our diet. Accumulating research published in peerreviewed scientific journals suggest that coffee can beconsidered a healthy beverage. Coffee contains, inaddition to caffeine, many other biologically active
compounds,including polyphenols such as chlorogenic
acid and lignans, trigonelline, and modest amounts ofmagnesium, potassium, and vitamin B3 (niacin). These
coffee compounds may reduce oxidative stress,
improve the gut microbiome, and modulate glucose andfat metabolism. In fact, consumption of 3 to 5 standard
cups of coffee daily has been consistently associatedwith a reduced risk of several chronic diseases27.
JDE Peet’s closely follows further scientificdevelopments and is actively involved in the Institute of
Scientific Information on Coffee (ISIC), a not-for-profit
organisation founded in 1990. ISIC is devoted to thestudy and disclosure of science related to coffee andhealth and coffee and sustainability.

EAT Lancet
van Dam RM, Hu FB, Willett WC. Coffee, Caffeine, and Health. NEJM. 2020 Jul 23; 383:369-378
28
WHO, EFSA, Nutri Score, Traffic Lights, Nutri Grade
27

Strategy andvalue creation

Governance andrisk management

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information

Optimal hydration is essential for good health. Coffee
and tea without added sugar or milk doesn’t containcalories and contributes to the daily recommended fluid
intake. Coffee and tea can help to stay alert andfocused during the day, and for those sensitive tocaffeine there are decaffeinated coffee and caffeine-freeinfusions in our portfolio. We have mapped our
products that contain no calories or meet the official
criteria28 for low sugar, low saturated fat and low saltcontent and are proud that approximately 75% of oursales volume fits into this healthy category.
Consumer trends increasingly favour new beveragesegments that are more nutritious and which, due to thefat and sugar content, may be subject to a range ofgovernment measures, including sugar tax, front-ofpack labelling and/or marketing restrictions.

PROGRESS IN 2023
In order to protect our traditional unique healthy
position, in 2023 we published our JDE Peet's Nutrition
Policy. Crafted with our consumers' preferences inmind, this policy is a public commitment of our Healthand Indulgence programme and provides guidance forinnovative, high quality, and sustainable products thatcan be enjoyed as part of a balanced diet and healthy
lifestyle. Our ambition is to grow our brands in asustainable way and positively impact people's
beverage consumption habits, in line with the scientifictargets for healthy diets as set by the EAT Lancet

121

Commission27. It serves as a clear roadmap for productdevelopment, preserving our heritage of nutritious
offerings.

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JDE Peet’s
at a glance

Our Health & Indulgence initiative is dedicated to
improving the nutritional profiles of our products withoutcompromising their sensory appeal. Since 2020,
several collaborating teams within our R&D community
have been actively innovating and reformulating our
products across global markets, aiming to significantly
reduce sugar and saturated fat content in our indulgent
products in a two-step process and making our
products fully compliant to our Nutrition Policy by 2030.
By their very nature, our beverages are low in salt andartificial ingredients.

Introduction

Strategy andvalue creation

Performance review
and outlook

In 2023, we reformulated several recipes in our Readyto-Drink portfolio, enabling us to meet the first step
threshold for our internal Healthy Indulgenceprogramme and achieving, on average, a 20% sugar
reduction. Similarly, we have upgraded multiple recipes
within the Tassimo category, mainly by focusing on a
30% (on average) reduction in saturated fat, so thatthey no longer qualify as products that are HFSS (highfat, sugar, salt) in the UK and meet our internal
thresholds. We also began preparing for an additionalround of improvements for Tassimo products.
Within the Senseo category, we made saturated fat
reductions of between 5% and 10% to our milky
products, enabling them to comply with the Healthy
Indulgence programme step 2 thresholds29. We alsoachieved significant improvement steps in our mixes
portfolio, which will be launched on the market in 2024.
Additionally, we introduced plant-based milkalternatives in both retail and professional spheres,offering consumers the choice to reduce animal-based
foods.
To ensure compliance and to monitor our progress, wehave developed a comprehensive Nutrition Dashboard.
This tool not only tracks our products based on theirenergy, saturated fat, and sugar content, but also
incorporates external nutrition-related measures,
including front-of-pack labelling. We have implemented
additional thresholds and key performance indicators,
particularly focused on saturated fat and sugar content,
allowing us to refine nutritional compositions wheneverfeasible, in terms of sensory and technical aspects. In

29

Equals less than 2g saturated fat per serving.

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Supplementary
informationline with the nutrition adjustments, we aim to reduce
portion and packaging sizes where relevant.

OUTLOOK
Looking ahead to 2024, our commitment to continuous
improvement remains steadfast. We are striving tofurther optimise our product portfolio through our
Health & Indulgence programme, aiming for virtually no
products falling into the high category of saturated fat
and sugar levels by 2025. Concurrently, we will refine
our Nutrition Dashboard, making it an integral part ofour operations. Addressing any data gaps in our
specification system is a priority, ensuring the tool's
accuracy and reliability. We will regularly review andadapt our nutritional target values in response to
emerging scientific insights and regulatory changes.
As we progress, we are vigilant about potential
challenges, such as delays in implementing new recipes
due to supply chain hurdles and time-intensive testingprocedures. We remain watchful for forthcoming
technological advances that could bolster our quest for
healthier products, all while upholding the same level oftaste and quality. Our ongoing dedication to theseprinciples is what propels us toward a future where
coffee & tea not only tantalise the taste buds but also
contribute significantly to healthier lifestyles.

PRODUCT LABELLING
Product labelling is fully integrated into our innovation
and renovation processes to ensure compliance toapplicable food laws and inform the consumer on our
products' attributes. In our ongoing commitment tomaintaining the highest standards, our QMS plays acrucial role in ensuring that we adhere to all productlabelling requirements across the diverse markets inwhich we operate. Our regulatory affairs team
meticulously assesses and validates all product labels,
ensuring compliance with regional and local legislationand product labelling standards.

PROGRESS IN 2023
In 2023, we received no significant fines or nonmonetary sanctions for non-compliance with laws andregulations concerning product and service informationand labelling. Where applicable, a front-of-pack (FOP)label has been included on the pack. All composite
products contain full labelling, including nutrition
information, offering full transparency and allowing
consumers to make an informed choice. We also
started a project to automate and improve the efficiencyof the product-labelling process, which will be
continued in 2024.
We engaged with stakeholders in a number of ways
during the year, including external engagement throughtrade associations and industry bodies, and precompetitive initiatives. We stepped up our scouting
process by expanding our external consultancy andtrade associations network.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

OUTLOOK
Looking ahead, we fully support the European
Commission's aim for a harmonised system for front-ofpack food labelling that is meaningful to consumers.
The proposal for harmonised mandatory front-of-packnutrition labelling to enable consumers to make healthconscious food choices has been delayed, but we arepleased that this is on the priority list for 2024. We alsoseek to explore AI tools to further expand the scouting
capabilities, allowing timely anticipation on regulatory
developments.

RESPONSIBLE MARKETING
Our brands bring people together, creating moments ofconnection and enjoyment, while providing energy andsensory experiences. They give people the freedom toexpress their individuality and the power to transformthemselves, because amazing things can happen over a
cup of coffee or tea.

PROGRESS IN 2023
In 2023, we made positive impacts through our
Responsible Marketing Policy, applicable to ouremployees and global marketing agency partners. The
policy defines guidelines regarding claims, advertising,nutrition, packaging, and DE&I, which are particularly
relevant to our consumers. We do not actively target our
advertising to consumers below the age of 14. Instead,
we focus advertising on channels that target 18+
consumers, complying with all applicable laws
governing marketing communications to children under
the age of 14.

Introduction

Strategy andvalue creation

Performance review
and outlook

We constantly work to comply with all applicable laws
and regulations in all the markets in which we operate.
Our products are clearly and comprehensively labelled.
We seek to display accurate product information, forexample their nutritional value, so that consumers canmake informed choices. Marketing seeks to innovate
and adapt products to further reduce sugar and(saturated) fat levels to contribute to our consumers'
healthy diet.

OUTLOOKAs we work towards our commitment of 100%
responsibly sourced green coffee by 2025, we will bringour ambition to life through our brands. In 2023, under
our Common Grounds programme, we introduced the
Sourcing for Better claim on our Jacobs product range.
From 2024, we will begin introducing our responsible
sourcing claim on our packs. We are also working on
our Sourcing for Better claim FOB and our Jacobs
reignite. We seek to introduce a 100% responsible
sourcing claim on our packs from 2024. In 2024, we arealso working towards instant refill paper bags and multiserve (R&G and beans) in recyclable packaging.

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BRAND HIGHLIGHT

FUELLING THE EVERYDAY
CHANGEMAKERS
Found in more than20

markets globally

Coffee mixes

pioneerin the Asia region

In 1987, SUPER pioneered coffee
mixes in Asia – driven by the vision
to make coffee universally
accepted and ultra-convenient
in a tea drinking region.
Today, SUPER is found in more than
20 markets globally, offering a wide
variety of quality instant beverages
across the coffee, tea, cereal andsoy categories. The vision remains
unchanged: to serve beverages that
refresh, recharge and renew everyday
people.
To promote health and well-being,
SUPER has already started enhancing
the formulation of its mixes range withthe reduction of sugar and saturated
fat, which in turn has improved its
nutritional rating on-pack.

Back to brands overview

èSUPER is also providing healthier
options through the introduction ofPure Instant Coffee into Malaysia
with SUPER Classic, and expansionin Thailand with a new variant,SUPER Espresso.

JDE Peet's N.V.
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JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Key to our improvement journey was the creation of
workgroups to address our key losses andopportunities, engaging the sites and community to be
involved in our improvement journey. We partnered withexternal consultant Metafocus to train all plant
managers and SHE leads in Europe on leadership andculture, and the training was cascaded across all sites
through Europe in 2023.

SAFEGUARDING OUR HEALTH AND SAFETY
At JDE Peet's, We Work Safely or We Don't Work! We
are committed to providing a safe and healthy work
environment for our employees, contractors andvisitors. As well as being our moral and legal duty, good
health and safety is good business. Throughout 2023,
we undertook a number of initiatives to further
strengthen the safe and healthy work environment
across the company.

PROGRESS IN 2023
In 2023, we celebrated Health and Safety week with fivedays of activities and a focus on our strategic priorities.
To drive our culture to interdependent level, our seniorleaders stepped forward showing accountability, stating
Safety Starts with Me. This message is echoed throughour organisation and all local leaders followed suit.

30

Process safety is a priority, and we developed ourcapabilities with hazard and operability study
methodologies as we continued building process safety
standards and procedures. High pressure cleaning is anecessary but dangerous activity to clean our systems.
We were not satisfied with current industrial practiceand developed and implemented a new industry bestpractice with technical controls that is making this taskmuch safer and healthier.
Healthy body, healthy mind, and healthy relationships
remain top of our agenda. During the year, our Healthy
You work group paid particular focus to mental health,building awareness and understanding on this important
topic. We are also working on building capabilities
among our SHE professionals and have improved our
induction programme.

Governance andrisk management

Financialstatements

We continued to operate a management system that is
ISO 45001 compliant across all our manufacturing sites.
By the end of 2023, 22 sites were ISO 45001 certified
and all sites will be certified by 2025, at the latest.
While we are not obliged by law to implement
management systems, we do it because it helps us
improve. We continue to carry out worker participation
consultations, in line with ISO 45001, covering risk
assessments, changes and developments. Additionally,
we hold an anonymous engagement survey annuallyand carry out an anonymous SHE survey before every
SHE assessment, as well as a formal meeting with tradeunions on every SHE assessment at eachmanufacturing site.
We use a number of different tools and systems toassess risk annually. These include:• Department and task risk assessments are doneusing the Fine and Kinney method30• For ergonomic risks, we use MAC and ART tools31
or equivalent country-specific tools• For process risks we use HAZOP32• Machine safety is risk assessed with therequirements of Use of Work Equipment Directive
2009/104/EC• ATEX33 risks are assessed in compliance with
Directive 2014/34/EU

The Fine & Kinney method is used to estimate the degree of risk and to determine which measures should be taken to reduce these risks.
These are Manual Handling Assessment Charts (MAC) and Assessment of Repetitive Tasks (ART).
32
A hazard and operability study (HAZOP) is a structured and systematic examination of a complex system, usually a process facility, in order to identify hazards to personnel, equipment or the environment.
33
The ATEX directives are two EU directives describing the minimum safety requirements for workplaces and equipment used in explosive atmospheres.
34
These aim to identify and prioritise potential risks to develop effective strategies for mitigating them.
31

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For non-routine tasks, we use Written Last Minute
Risk Assessments34, applied for all tasks with afrequency of less than three months.

We have incident reporting systems in place across all
sites, and risk reporting is encouraged and is part ofmany of the sites' recognition systems. We Work Safely
or We Don't Work! is a clear expectation and obligation
for all employees to stop any unsafe activity
immediately.
By engaging our people and driving continuous
improvement, we are both improving our performanceand building ownership and pride in our employees. We
continue instilling safe behaviour with both planned andspontaneous safety conversations, which cover aminimum of two planned and two spontaneous safetyconversations per employee per month. We use the
OSHA (Occupational Safety and Health Administration)
standard as a reference for injury reporting and wereport and treat high potential near misses in the same
way as recordable injuries, while occupational illnesses
are reported in the same way as injuries.
Incident, injury and illness investigations are carried out
with a strong focus on system improvement and a 'no
blame' mentality.

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JDE Peet’s
at a glance

We use 4W1H, basic condition check, 6M, 5Why and,to ensure root cause focus, we also use DNV SCAT35,36.
All recordable injuries and high-potential near misses
are reviewed by the regional operational director, global
OPEX director and global SHE. The global SHE also
follows up on agreed actions and their effectiveness. All
incident investigations are emailed to every site as foryour-information and review.
Before beginning a new job at one of our site facilities,
employees follow an induction programme that covers abroad range of health and safety topics, from our Health& Safety Policy and emergency preparedness, throughto safety risks in the workplace and correct PPE usage.
Contractors undergo thorough induction training on
relevant risks. Key information and communication iscascaded monthly from global SHE meetings to every
site, where campaigns, incidents and standard updates
are distributed and displayed on information boards anddiscussed during town halls and meetings.
Throughout the year, we continued to ensure thatoccupational health services were implemented per
country based on local legislation. Occupational healthis an integral part of our management system, including
hazard identification and risk assessments, and wecontinued to make progress on our health & safety
culture. In 2023, our global Total Recordable Incidents
Rate (TRIR) increased to 0.59 (2022: 0.46). Globally, 60
injuries occurred in 2023.

35
36

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Governance andrisk management

Regrettably, we must report a tragic incident that
occurred in 2023 resulting in the loss of one of ourvalued colleagues. This incident has profoundly
impacted our organisation, and we recognise the needfor continuous improvement in our occupational healthand safety practices. We have undertaken acomprehensive review of the circumstances
surrounding the incident to understand the root causes,
enabling us to identify areas for improvement andimplement corrective measures, such as investment inenhanced training programmes, safety audits andinspections, and technologies to create a safer work
environment.

OUTLOOK
Looking ahead, we will focus on furthering our process
safety. Following the success of our partnership with
Metafocus on leadership and culture training in Europe,
we will roll out similar initiatives in other geographies in
2024. We seek to advance our Healthy You programmeand health within the organisation, and increase ourscope to report on incidents beyond manufacturing
sites. We will also drive improvement initiatives focusedon leadership calibration, contractor management,competency building and system simplification and user
friendliness. With an expanding scope and leanorganisation, we face challenges with time and humanresources. We will address this in 2024 by investingtime in the global SHE conference to better develop
assessing capabilities in all our SHE leads to enablesolidarity in assessing and helping each other improve.

As root-cause analysis techniques, 4W1H refers to Who, What, Where, When and How; 6M refers to Manpower, Method, Machine, Material, Milieu and Measurement;
DNV SCAT is a systematic cause-analysis technique to learn from accidents and near-misses to prevent injury, environmental damage and quality losses.

Financialstatements

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information

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COMPLYING WITH LABOUR LAWS AND
REGULATIONS
In line with our focus on employee health and safety, we
strongly believe that all employees are entitled to the full
protection of all laws and regulations that govern theiremployment with us. More information can be found in
the Observing the highest standards of ethics andcompliance section of this report. We adhere to allapplicable local laws and regulations regarding
association and collective bargaining.
We have Works Councils in place across many
locations, and approximately 34% of our people arecovered by collective bargaining agreements. They
include employees in the Netherlands, Belgium, Brazil,
the Czech Republic, France, Germany, New Zealand,
Norway, Poland, Spain, Sweden, and the United
Kingdom.
In Turkey, there was a movement towards unionisationin 2020 resulting in one of the unions receiving theauthorisation from the governmental authority.
However, the authorisation was based on an incorrect
factual assessment of the segmentation of the Ofçay
business and organisation. Therefore, the authorisationand the assessment are subject to further review by the
court. We will respect any final judicial outcome of thisprocedure.
In the US, Peet’s Coffee has also seen a small
movement towards unionisation with employees at fourout of our 202 company-owned stores voting in favourof union representation in 2023. These employees

Introduction

Strategy andvalue creation

Performance review
and outlook

represent less than 1% of Peet’s total people
population who are now represented by two distinct
unions. Discussions have begun with one union on theterms of a collective bargaining agreement andnegotiations with both unions are expected to continue
in 2024.
In general, when including employees not covered bycollective bargaining agreements, we perform regularbenchmarks in order to assess and ensure the rightworking conditions, and that compensation and social
benefits are in line with market trends (sectoral and/or
functional).

Governance andrisk management

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information

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RESPECTING HUMAN RIGHTSJDE Peet’s is committed to respecting all human rights,
as defined in key international covenants, including but
not limited to the International Bill of Human Rights. Asa signatory to the UN Global Compact, we arecommitted to the UN Global Compact Principles andthe UN Guiding Principles on Business and Human
Rights. We also follow the OECD Guidelines forMultinational Enterprises and we are a member of the
ILO Child Labour Platform.
Our Human Rights Policy codifies our commitment torespecting and protecting human rights. We expect
everyone at JDE Peet’s to adhere to the standards
outlined in this policy, alongside but not limited to, theJDE Peet’s Supplier Code of Conduct and our
Responsible Sourcing Principles. These policies, andthe processes and provisions within, apply to all our
employees worldwide, as well as our agents,
consultants, contractors, and suppliers. We expect all
our suppliers and partners to uphold the same
standards to protect human rights in their own
operations and to develop and implement similar
policies and risk-based due diligence processes in theirown supply chains. Failure to adhere to the abovementioned policies may result in disciplinary action,
including termination of employment or supplierpartnership, as applicable.
We recognise that human rights issues, including childlabour, forced labour and harassment, are complex andrequire solutions involving other industry players,

governmental institutions and other relevant
stakeholders, including NGOs.
In recent years, we have seen an increase in the number
and scope of regional, national, and state-level laws
focused on human rights due diligence. Consequently,
in 2023, and guided by the internationally recognised
framework of the Organization for Economic Cooperation and Development (OECD) Due Diligence
Guidance for Responsible Business Conduct, we
strengthened our Human Rights Due Diligenceprogramme. This included revising our policies,
Responsible Sourcing Principles and management
systems to better assess our own operations andsupply chains to identify human rights risks, andsubsequently develop and implement due diligencemeasures and action plans to prevent, address andmitigate any identified risks.
In 2023, we updated our Human Rights Policy as wellas the Supplier Code of Conduct to embed risk-based
due diligence across our own operations and our supply
chain, which focuses on long-term, continuous
improvement and multi-layer industry approach.

PROGRESS ON HUMAN RIGHTS DUE DILIGENCEPROGRAMME
We acknowledge that potential human rights risks may
exist across different areas of our business and supply
chain and that these risks require specific approaches
to human rights due diligence. Our human rights due
diligence is therefore focused on identifying andaddressing any negative human rights impacts in key

areas: our own operations/ manufacturing, coffee & tea
sourcing, and procurement of other goods and services,with working teams in each respective area. These
teams are overseen and advised by steeringcommittees composed of our senior management. In
2023, supported by an external company thatspecialises in human rights advice, we finalised andcascaded our standard operating procedures for humanrights due diligence tailor-made to each of the threeareas mentioned above, which will be further deployedin 2024.

PROGRESS ON OUR GRIEVANCE MECHANISM
Recognising the importance an effective grievancemechanism plays for people impacted or harmed byany human rights issue, in 2023, we expanded thescope of our Speak Up Policy to enable our external
stakeholders to access our grievance channels, andupdated our website to make the link to our grievancereporting tool more easily accessible.
Furthermore, our updated Human Rights Policy andSupplier Code of Conduct require our suppliers toensure grievance mechanisms are in place in theiroperations to actively engage in remediation process.

JDE Peet's joined the Q C Conta project(“What people tell” in colloquial Portuguese)in Brazil. The project uses a farmer survey
and stakeholder dialogue conducted by NGO
Solidaridad to analyse and provide
recommendations on how a coffee-specificbaseline grievance mechanism can beadapted to the local Brazilian environment.
The results are expected to provide insights
on the effectiveness of grievancemechanisms for preventing and mitigating
human rights (and environment-related) risk
in coffee supply chains. The project, which
includes a local stakeholder working groupinvolving sector representatives, was initiatedunder the umbrella of the German Coffee
Association. It began in November 2022 andwill run until the end of March 2024.

PROGRESS ON TRAININGS
In 2023, we conducted targeted training workshops on
human rights and due diligence procedures to both ourleadership and our employees from coffee & tea
sourcing, procurement, operations and sustainability, toraise their awareness of human rights and our due
diligence framework, including the due diligencestandard operation procedures.

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JDE PEET’S SITES AND
MANUFACTURING
The health, safety and well-being of our employees is of
the upmost importance to JDE Peet’s. All employees
are required to sign the JDE Code of Conduct or Peet’s
Code of Conduct, as applicable, which set out thestandards of behaviour we expect from our entire
workforce. We have also embedded diversity, equity
and inclusion in our values and how we manage ourbusiness. This means that we do not tolerate any formof discrimination based on race, ethnicity, nationality,
religion, age, sex, gender identity, sexual orientation,
disability, socio-economic background, or any otherrelevant basis, and we encourage anyone to use our
Speak Up channels to report a concern. For more
information on how we embed our Codes of Conduct
into our operations, see the Ethics and Compliancesection of this report.
To verify the implementation of our Human Rights
Policy, we conduct self-assessment questionnaires forour own sites, enabling us to better understand thehuman rights risks and labour standards in ouroperations as we work to design and implement arobust programme of human rights risk management forour own operations. This is in addition to ourprogramme of health and safety audits. The insightsfrom these self-assessment questionnaires will allow us
37Introduction

Strategy andvalue creation

Performance review
and outlook

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Supplementary
information129

to monitor and evaluate the risks in our manufacturing
sites and take appropriate action (including SMETA(Sedex Members Ethical Trade Audit) ethical audits)
where needed, to prevent and mitigate potential humanrights impacts, and remediate any actual impacts if
found.

PROGRESS IN 2023
a. We completed Sedex SAQ for our manufacturing
units located in APAC, LARMEA,37 and Peet's' site in
Alamedab. We completed Sedex SAQ for 93%38 of our
European plants
c. We trained our operations leaders, site HR business
partners and SHE leads on human rights due
diligence across our 33 sites39
d. We defined our Standard Operating Procedure toaddress and manage human rights risks at our sites.

OUTLOOK
Our targets for 2025 are:a. 100% of our production sites audited according to
SMETA
b. Our Standard Operating Procedure deployed andfully operationalised (including remediation plans for
all critical cases identified)c. A roadmap defined to include our coffee stores(OldTown, Peet's US and China).

Excluding our manufacturing units in Saint Petersburg, Novosibirsk and Kazakhstan, and manufacturing units of Peet’s China, Stumptown and Intelligentsia.
Excluding Les 2 Marmottes
39
Excluding Les 2 Marmottes for Europe, Banbury site in UK and exclusion above
38

Governance andrisk management

COFFEE & TEA SOURCING
Respecting and advancing human rights is clearly apriority for JDE Peet’s. Over 80% of the world's coffee
is grown by smallholder farmers and both coffee & tea
production systems are largely informal in theemployment of seasonal coffee harvesters and tea

pickers. Human rights challenges are therefore not new
to us, and, over the years, we have used our
Responsible Sourcing pillar to implement action plans
and farmer and worker programmes in at-risk origins,addressing topics such as child labour in Uganda,
Vietnam and Honduras, working conditions in Brazil,
and child protection and gender programmes in Assam.

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There is no place for child labour in our supply chain. The
causes of child labour are complex, and often linked toeconomic, social and cultural issues in a given community.
Each situation in each country is different, and can evenvary within a region in a country. We believe it is importantthat we help address the situation, making sure we act.
Walking away from an at-risk supply chain or region from
where we source our coffee or tea is not the right solution,and fails to resolve the problem.
This is why we are acting in Honduras. We are awarethat there are increased risks of child labour during thecoffee harvest period, due to a shortage of labour, thefact that there are many migrant families seeking work,or the fact that schools are closed. Since 2018, we havebeen partnering with World Vision and ADECAFEH(Asociación de Exportadores de Café de Honduras),and have together established 11 childcare centres in
the middle of the coffee growing areas. These are safe
places where parents can bring their children, enabling
the parents to go to the farms and harvest coffee
without worrying about the well-being of their children.
The children receive warm meals, activities and learning
opportunities throughout the day from qualified staff.
Without these childcare centres, it would mean parents
have no other option but to take their children to thefields, exposing them to unnecessary risks.
However, for this approach to work we need the
involvement and buy-in of the whole community andlocal authorities, from securing the land to building thecentres, ensuring there is capable staff available. This
project has been able to prevent over 2,000 child

Introduction

Strategy andvalue creation

Performance review
and outlook

working hours, giving children an opportunity to playand learn as they are meant to.

OUR PROCESS AND PARTNERSHIPS
Our approach to Human Rights Due Diligence builds on
our commitment to address and prevent negative
human rights impacts in our supply chain while
conducting business responsibly and ethically. Thesestandards, and our expectations of suppliers to support
our commitment, are communicated through our
Responsible Sourcing Principles and our Supplier Codeof Conduct, which all suppliers are required to comply
with.
We have deployed an ongoing risk management
process that follows a multi-step approach, focusing on
supplier engagement, risk assessments, remediation
and action plans. This allows us to both identify
suppliers that are aligned and those that require timebound improvement plans.
Through the process, we have also set up a clear
governance and decision-making structure involving
cross functional teams and senior leadership.

PROGRESS IN 2023
In 2023, we joined the International Labour Organization(ILO) Child Labour Platform, an inter-agency businessinitiative to eradicate child labour in supply chains. Oneof the projects established under this initiative is totackle the root causes of child labour in supply chains,
focusing primarily on coffee production in Honduras,
Uganda and Vietnam. This coalition brings together

Governance andrisk management

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governments, workers and employers, companies, andcivil society stakeholders to facilitate knowledge
sharing, cooperation, and collective action to tackle theroot causes of child labour.
Despite being the world's largest producer of coffee, asignificant portion of Brazilian coffee is produced bysmallholder farmers. These individuals often require
additional labour support, particularly during the coffee
harvest. In 2023, we launched a Common Grounds
project with Expotadora Guaxupé, aimed at preventing
forced labour and improving working conditions. As akick off to the project, we brought in our long-standing
partner, Verité, to train the agronomists and thesustainability team to identify and prevent work
analogous to slavery using the Socially Sustainable
Sourcing Toolkit (S3T), an outcome of a collaborative
effort in The Cooperation On Fair, Free, Equitable
Employment (COFFEE) Project. Together withExportadora Guaxupé, we expect to reach over 350
farmers by the end of 2026. Through comprehensive
training on labour legislation, efforts to enhance
workers' accommodations, and providing water filters,
we aim to positively impact more than 2,000 individuals
in rural areas.
In 2023, we extended our participation into the third
phase of the Ethical Tea Partnership (ETP) and UNICEF'Improving Lives’ programme, which is building better
lives for children and families living in tea communities
in Assam, India. This programme is an excellent
example of the power of collaboration to address
systemic social challenges supported by several tea

companies. The programme aims to support children,
women, and families living across 205 tea estates, byimproving healthcare, nutrition, access to water,
sanitation and hygiene facilities, education andenhanced child protection all of which impact the livesof workers and their families and thereby driving
sustainable change for children. Find out more here.

OUTLOOK
Going forward, we will build on our robust risk mappingand supplier engagement approach and continue to
implement programmes in partnership with our
suppliers, ensuring we include the needs and rights offarming communities, children and youth in the designof these programmes, including local and national
government institutions, civil society organisations andworkers’ organisations.
The larger challenge is eradicating poverty, which isoften one of the underlying causes of child labour.
Changing cultural norms and increasing awarenessabout the importance of education and the harmful
impacts of child labour are formidable tasks, both ofwhich require building local capacities and farmer andcommunity resilience for long-term success.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

PROCUREMENT OF OTHER GOODS &SERVICES
As part of our focus on responsible sourcing and ourcommitment to our Supplier Code of Conduct, in 2023
we made important progress on our responsible
sourcing journey along our non-coffee & tea supply
chain.
We asked Sedex to assess more than 12,000 supplierlocations on the basis of inherent human rights risks,
based on location and industry activity. We used six
indicators on environment and business ethics and theSedex platform, which contains eight of the mostserious human rights risks, aligned with the ILO
Conventions:• Forced labour• Discrimination• Freedom of association• Gender• Children & young workers• Regular employment• Working hours• Health, safety & hygiene.
We then prioritised COGS suppliers for due diligencebased on their combined risk score and our annual
spend with them, and we identified four different risk
thresholds to classify these suppliers.

Introduction

Strategy andvalue creation

Performance review
and outlook

Based on our risk mapping exercise, which we
conducted in 2022, at least 200 COGS supplier (and7,800 non-COGS suppliers) locations are considered a
combination of low spend and low risk: the lowest risk
threshold. The remaining suppliers reaching the higher
risk thresholds are prioritised for further due diligence,
including SMETA ethical audits (or equivalent audits).

Governance andrisk management

Financialstatements

European COGS suppliers locations

The following graph shows the percentage mentioned
above.

OUTLOOK
Looking ahead, our 2025 target is to have our COGS
suppliers from all regions and all supplier locations
compliant with our standard operating procedure fordue diligence, and have them further monitored in linewith our standard operating procedure. We also want tobegin designing the due diligence roadmap for our nonCOGS suppliers. This will allow us to progress ourunderstanding on the human rights risks present in our
supply chain on both a site-by-site basis and inaggregate, enabling us to design and implement aneffective human rights due diligence programme andinvestigate potential impacts before they materialise.

PROGRESS IN 2023
During the year, we monitored the locations of our noncoffee & tea European COGS suppliers which representroughly 40% of the total number of COGS locations in
Europe. Based on our standard operating due diligenceprocedure, approximately:• 45% locations are considered to be low risk andtherefore not required to be in Sedex, in line with ourpolicy• 55% locations are instead required to be in Sedex(or Ecovadis)• 37% are already Sedex (Ecovadis) members and theremaining 18% still need to be onboarded in Sedex(or Ecovadis).

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Additionally, we trained 90% of our COGS buyers on
our standard operating procedure for COGS suppliers,
which will help ensure a smooth cascade into themarkets.

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Introduction

Strategy andvalue creation

Performance review
and outlook

Uganda Communities: PromotingChild Education
COMMODITY: Coffee
TIME FRAME: 2020-2023
LOCATION: Greater Maska and Rwenzori districts, Central
and Western Uganda
SMALLHOLDER FARMERS REACHED: 4,200
PARTNERS: Rainforest Alliance, Kyagalani Coffee Ltd,
Community Empowerment for Rural Development (CEFORD),
Netherlands Enterprise Agency (RVO)

Uganda is the second largest coffee producer in Africa, and the eighth largest
worldwide - producing about 10% of the world's coffee supply. Despite this, themajority of Ugandan smallholder coffee farmers live below the poverty line, which
increases the risk of child labour and the likelihood that their children won't
receive a quality education.
Demonstrating the true power of collaboration to address a systemic challenge,
we are proud to have made a positive impact in these children's lives through the
project over the last three years, including:• 200 youths trained in artisanal skills• 45 youths completed training in coffee production• 4,200 farmers trained in Good Agricultural Practices to improve productivity• 15 schools adopted child-friendly learning activities to attract and keep
children at school

Governance andrisk management

Financialstatements

Supplementary
information

Tackling Child Labour in
Vietnam
COMMODITY: Coffee
TIME FRAME: 2020-2024
LOCATION: Gia Lai, Dak Lak
SMALLHOLDER FARMERS REACHED: 1,500
PARTNERS: Vinh Hiep Coffee Company, Simexco Daklak Ltd,
Rainforest Alliance, Netherlands Enterprise Agency (RVO), TMT
Consulting

The project seeks to address child labour in identified risk areas of theCentral Highlands of Vietnam, with a particular focus on indigenous
communities. Through a multi-faceted approach, the project aims to lay thefoundation for better livelihoods by providing training to 1,500 farmers,
promoting gender equality, educating children through remedial classes
and children's clubs and enhancing access to vocational training for youth.
It also strives to improve government policies related to child labour andindigenous communities, while training coffee sourcing companies toenhance child labour prevention and remediation systems.
Achievements include:• 32 key trainers in participatory teaching methods• 1,889 farmers trained• 465 children in child-led clubs• 158 members in child protection groups• 24 youths trained on vocational skills

132

BRAND HIGHLIGHT#2

brand in the UK(market share)

100

years
(establishedin 1923)

100 UPLIFTING YEARSOF GREAT TASTING COFFEE
Since 1923, Kenco has championed
great coffee, starting from a shop
in Vere Street, Mayfair, and thenthrough mail order to British
country houses. For 100 years,
people have been inviting Kenco
into their homes to fuel uplifting
moments.
Kenco brings people together, and
it is through that togetherness thatpeople are uplifted and inspired bya great tasting coffee.
In 2023, Kenco accelerated its
sustainability agenda by launching
Kenco Plant-Based Oat and AlmondLatte specialities, and by pivoting its
focus to refills, Kenco confirmed its#1 position in the refill segment.
Kenco endeavours to use thisexpertise to continue to bring evenmore coffee occasions, for many
more years to come.
Kenco. Made to Uplift

Back to brands overview èJDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

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Supplementary
information

NON-FINANCIAL INFORMATIONOUR APPROACHJDE Peet's reports on its financial and non-financial
performance in a transparent and integrated manner.
We are making progress on our sustainability journey,
which includes preparing to comply with the Corporate
Sustainability Reporting Directive (CSRD), which takes
effect from 2024. This will include making
improvements to our data quality, process and controls
when it comes to non-financial information. The firststep towards CSRD compliance is reporting upon ourdouble materiality analysis in this annual report, which isthe basis of our sustainability reporting.
To accelerate this transformation, for 2023 we haveincreased the number of KPIs under limited assuranceof Deloitte to 15 from 10 KPIs under limited assurance
in 2022.

REPORTING PERIOD AND SCOPINGSThe non-financial information in this report covers theperformance of JDE Peet’s for the period from 1
January 2023 up to and including 31 December 2023,
unless otherwise stated. The scope of entities included
in our non-financial reporting is equal to the basis of ourconsolidation that can be found in note 1.1 of theConsolidated Financial Statements, unless otherwise
stated. More information can be found in note 9.7 of theConsolidated Financial Statements, including a list of
our most significant subsidiaries. The scope extends tocover material impacts, risks and opportunities in the
upstream and/or downstream value chain resulting fromdouble materiality assessment.

For the KPIs selected for limited assurance, any
scoping adjustments have been included in the basis ofpreparation tables below. All other scoping adjustments
are included in the Overview of our non-financial
information section.

For each of the KPIs included in the limited review
scope, we prepared a basis of preparation, which
includes the definitions, scope, internal controls,
evidence and calculations for the respective KPIs. A
summary has been included in the table below.

As part of our enterprise risk management process, we
identify and monitor risks that could impact JDE Peet’s,
which includes sustainability risks. These main risks areincluded in the Risk management section of this report.

Five of the non-financial KPIs, namely (i) certified orverified coffee purchases, (ii) RSPO-certified palmbased oils, (iii) smallholder farmers reached in 2023, (iv)packaging designed to be reusable, recyclable orcompostable and (v) share of the science-based GHG
emissions reduction target (Scope 1 & 2) for 2030 toabate in each year, are included in the Loan Facilities
Agreement entered into with our core banks and linked
to the applicable interest rate. Our performance against
the targets are reported annually to the banks andsubject to limited assurance by our external auditor.
More information can be found in the note 5.2 of theConsolidated Financial Statements section in thisreport.

JDE Peet's has manufacturing facilities in the following
regions:

RegionNumber of
manufacturing
facilities

Europe15

LARMEA

13

APAC

8

Peet's6

LIMITED ASSURANCE ON SELECTED NONFINANCIAL KPISAs we continue our sustainability journey, we increased
the number of KPIs over which Deloitte provides limited
assurance. In 2023, this increased to 15 non-financial
KPIs, which we consider to be the most relevant nonfinancial KPIs for JDE Peet’s. These KPIs were selectedbased on the material topics identified in our double
materiality assessment as being important tostakeholders, KPIs which are linked to our loan facility,
and the KPIs that are also, but not only, monitored in
our Common Grounds sustainability programme.

REPORTING PRINCIPLESThis report was developed in accordance with thereporting principles defined by the GRI 2021 Standards:
Stakeholder Inclusiveness (more information can befound in the Engaging our stakeholders section of thisreport) and Sustainability Context (more information canbe found in the External trends section and in the Our
performance section of this report).

CORPORATE SUSTAINABILITY REPORTING
DIRECTIVE (CSRD)
From 2024, we will report in line with the CSRD, which
requires companies to report on the impact theircorporate activities have on the environment andsociety, and requires the audit (limited assurance) ofreported information. In this 2023 annual report, we will
include initial strategies, policies, impacts, risks &opportunities, and metrics as defined under CSRD, in
preparation of the switch to CSRD reporting in 2024.

DATA QUALITYTo ensure data quality, we have implemented a datacollection process for non-financial information. We
performed an internal review of our existing KPIs andfor the KPIs in scope for limited assurance in 2023.
The data used in this report is based on a number ofdata management and monitoring systems used by therespective functions and departments at JDE Peet's.
Once the data was collected and consolidated, several
levels of review were applied to the data received.
Additionally, the data has been reviewed by the steeringcommittee and monitored during the quarterly
sustainability review programmes.
Certain non-financial KPIs disclosed in this annual
report may include assumptions and estimates as
definitions and availability of (quality) data may, in somecases, be less mature. For these KPIs, the assumptions
and estimates can be found in the footnotes.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

To continue to improve the accuracy of our data, whereapplicable, we have increased the use of third-party
verified information as input for our calculations andcontinue to improve our non-financial data collection
process.
Changes in legislation, as well as new and innovativeideas and technologies, are developing continually, and
JDE Peet's will continue to evaluate these changes andadapt to new realities when needed.
In 2022, we began implementing the JDE Peet's nonfinancial internal controls framework, using the KPIs forlimited assurance to define the first scope. CSRD also
increases this need, as all disclosure requirements as
defined in the European Sustainability ReportingStandards (ESRS) are under limited assurance of theauditor. Consequently, in 2023 we increased thenumber of KPIs under limited assurance to 15.

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

135

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

136

Supplementary
information

BASIS OF PREPARATION
The table below sets out the basis of preparation for the KPIs selected for limited assurance and the results of these KPIs.
Pursuant to the responsible sourcing definitions set out below, a product or material which is “responsibly sourced” does not mean or imply the absence of human rights violations or other supply chain risks in connection with the production or
supply of such product or material.

RESPONSIBLE SOURCINGKPI

Definition

Scope

Calculation% of responsibly sourced
green coffee

Responsibly sourced green coffee covered by a sustainability scheme recognised by the coffee industry, such as GCP
Equivalence Mechanism, including Enveritas, Rainforest Alliance, 4C, Fairtrade, etc.

All consolidated JDE Peet's
entitiesn/aVolume of responsibly
sourced green coffee divided
by total volume of green
coffee (weight in MT)

Overview of nonfinancial KPIs Responsible
Sourcing

83.8 %% of responsibly sourcedtea

Responsibly sourced tea (Camellia sinensis) and rooibos (Aspalathus linearis) refer to the tea (processed tea fromAll consolidated JDE Peet's
sensitive origin) and rooibos purchased or manufactured by JDE Peet’s for which the supplier has been recognised by aentities except Les 2 Marmottes
third party as meeting its sustainability/verification requirements. These third parties may include, Rainforest Alliance/UTZ, and Intelligentsia
Fairtrade, ETP, Enveritas, etc.

Volume of responsibly
sourced green leaf orprocessed tea or rooibos
divided by total volume ofgreen leaf or processed tea
or rooibos (weight in MT)

n/aOverview of nonfinancial KPIs Responsible
Sourcing

40 %% of responsibly sourced
palm oilDirect responsibly sourced palm oil refers to the purchased palm oil with Roundtable on Sustainable Palm Oil (RSPO)
certification

All consolidated JDE Peet's
entities

Volume of responsible
sourced palm oil divided bytotal volume of palm oil(weight in tonnes)

n/aOverview of nonfinancial KPIs Responsible
Sourcing

100 %% of deforestation-freevirgin pulp & paper

The FSC 100%, FSC mix and PEFC certified portion of volume of virgin packaging materials, paper cups and point-ofsales materials of products sold. JDE Peet's continues to work with our suppliers to mature information flows withrespect to FSC and PEFC certification information. Whilst we are able to verify that relevant suppliers hold FSC and PEFC
certification, we remain reliant on confirmation from those suppliers that individual materials supplied fall under thosecertification schemes.
Smallholder farmers are small-scale agricultural producers that primarily rely on family or household labour or workforce
exchange with other members of the community, including permanent, seasonal, part-time, piece rate, migrant and thirdparty contractors, female and male. By ‘reached smallholder farmers’ we mean producers and workers who have beenregistered by the project implementing partner (supplier, NGO, local government entity) as recipients or beneficiaries offield projects that JDE Peet’s is investing in. In order to count the smallholder farmer as ‘reached’ they need to berecorded as part of an active project in the relevant reporting tool as a recipient of the specific training/services of thatproject.

All consolidated JDE Peet's
entities, except 12Oz, Maison
Lyovel, Tea Forté, Campos, Les 2
Marmottes, Peet's China

Total materials metric tonnes
with FSC, PEFC certificate
divided by the total soldvolumes in metric tonnes

n/aOverview of nonfinancial KPIs Responsible
Sourcing

34.4 %All consolidated JDE Peet's
entities

Number of smallholder
farmers reached, which iscounted annually assmallholder farmers reached
for the given calendar year
and total as all smallholder
farmers reached since 2015

n/a

Overview of nonfinancial KPIs Responsible
Sourcing

110,900# of smallholder farmers
reached in 2023

Baseline year

Reference

2023 Result

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

137

Supplementary
information

MINIMISING FOOTPRINT
KPI

Definition

Scope

Calculation

Packaging intensity

Total weight of the packaging materials per cup.
The average grammes of product per cup is 5.4, actual serving sizes differ per product based on recipe
formulation.

All consolidated JDE
Peet's entities, except
12Oz, Maison Lyovel, Tea
Forté, Campos, Les 2
Marmottes, Peet'sn/aTotal weight of packaging
materials in grammes divided
by serving sizes of units sold(cups).

Overview of non-financial
KPIs - Minimising
Footprint

2.20

All consolidated JDE
Peet's entities, except
12Oz, Maison Lyovel, Tea
Forté, Campos, Les 2
Marmottes, Peet's China

Total packaging classified as n/a
designed for re-use,
recycling, composting
divided by total weightpackaging sold (weight inmetric tonnes)

Overview of non-financial
KPIs - Minimising
Footprint

79 %GHG emissions Scope 1 & 22020 baseline minus GHG
emissions Scope 1+2 ofcurrent year divided by GHG
emissions Scope 1 & 2 2020
baseline

2020

Overview of non-financial
KPIs - Minimising
Footprint

21 %

n/a

Overview of non-financial
KPIs - Minimising
Footprint

4,129,565– Designed for re-use: Packaging designed to be reusable, specifically to be refilled for the same or% of packaging
different purpose.
components designed tobe reusable, recyclable or – Designed for recycling: Packaging designed to be recyclable must be accepted into recycling waste
streams in the end market of sale in its post-consumer discarded state. If no guidelines are present wecompostableclassify designed for recycling as packaging made from a minimum of 95% of primary material in it
discarded state.
– Designed to be compostable: Packaging which meets ISO13432 standard at a minimum is classified% of (absolute) reductionof Scope 1 & 2 GHG
emissions

All JDE Peet’s Scope 1 & 2 greenhouse gas (GHG) emissions as defined by the GHG Protocol Corporate All consolidated JDE
Accounting and Reporting Standard, using the operational control approach.
Peet's entities

Absolute Scope 3 GHG
emissions (in tCO2e)

All JDE Peet’s Scope 3 greenhouse gas (GHG) emissions as defined by the GHG Protocol Corporate
Accounting and Reporting Standard, using the operational control approach.

All activities in operational Activity data times emission
control of JDE Peet's
factorvalue chain outside Scope
1 & 2 emissions. See
details below, in
methodology

Baseline year

Reference

2023 Result

JDE Peet's N.V.
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at a glance

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Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

138

Supplementary
information

KPI

Definition

Scope

Calculation

Baseline year

Reference% of water intensity
reduction

Water withdrawal includes all the water sources that come into the site, streams/intake for processing,and sanitary purposes. It includes dilution, moistening, casing & flavour, steam, quenching water,
cleaning purpose and cooling water. Produced volume is the amount of consolidated finished goods
produced.

All manufacturing units of
all consolidated JDE
Peet's entities

Water withdrawal 2020
baseline minus water
withdrawal of current year
divided by total produced
volume in 2020 baseline(weight in m3/tonne)

2020

Overview of non-financial
KPIs - Minimising
Footprint

2023 Result
1.4 %Maintain waste to landfill
under 1%

All manufacturing units ofMaintain waste-to-landfill under 1% is where waste (kg/t) is disposed less than 1% of waste to landfill(kg/t). (Waste incineration without energy recovery is also considered landfill category). Total waste is the all consolidated JDE
Peet's entities
sum of all hazardous and non-hazardous waste streams.

Landfill (kg/t) plus waste
incineration without energy
recovery generation (kg/t)
divided by total waste (kg/t)
multiplied by 100n/aOverview of non-financial
KPIs - Minimising
Footprint

1.1 %JDE Peet's N.V.
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Financialstatements

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Supplementary
information

CONNECTING PEOPLE
KPIDefinition% of women in leadership Leadership positions refers to employees who are part of the Executive Committee and Global
Leadership team of JDE Peet’s. Employees part of the Global Leadership team hold positions ofpositions
Directors and General Managers (or equivalent) within JDE Peet's.

Scope

Calculation

Baseline year

Reference

All consolidated entities
apart from a small
portfolio of entities
contributing to less than
5% of total revenue and
19% of employees

Headcount of women
holding leadership positions
divided by the total
headcount of employees
holding leadership positions

n/aOverview of non-financial
KPIs - Connecting People

2023 Result
41 %% of manufacturing sites
with food-safety
certifications

Food Safety Quality Certified Manufacturing sites: any internal and external manufacturing site that has
passed a food safety quality audit performed by an international recognised certification body.

All consolidated JDE
Peet's entities.
It includes internal andexternal manufacturing
sites

Number of manufacturing
sites with a valid GFSI
certificate divided by total
number of manufacturing
sites

n/a

Overview of non-financial
KPIs - Connecting People

85 %Total Recordable
Incidents Rate

Total number of recordable of lost time injuries, restricted work cases and medical treatment cases in
JDE Peet's manufacturing units.

All manufacturing units of
all consolidated JDE
Peet's entities

Number of lost time injuries,
restricted work cases andmedical treatment cases
times 200,000, divided bytotal hours worked for
employees and contractors

n/aOverview of non-financial
KPIs - Connecting People

0.59

Voluntary turnover rate inleadership positions

Voluntary turnover during the year in the Global Leadership team and Executive Committee. Employeespart of the Global Leadership team hold positions of Directors and General Managers (or equivalent)within JDE Peet's.

All consolidated entities
apart from a small
portfolio of entities
contributing to less than
5% of total revenue and
19% of employees

Voluntary turnover inleadership divided by total
turnover in leadershipn/aOverview of non-financial
KPIs - Connecting People

5.15 %JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

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Performance review
and outlook

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Financialstatements

Supplementary
information

140

Methods to calculate Scope 3 data
Scope 3 Reporting

Calculation Methodology

Explanation

Scope 3.1: Purchased goods & services

Supplier specificHybridSpend based

Scope 3.2: Capital goods

Spend based

Green coffee purchase uses sampling of the complete farm-to-port value chain, through third party Enveritas, which is converted to emissions using a standardised
methodology. Includes both land management and post-harvest activities. Land Use change is included using FAO stat commodity data by country. Laminate
packaging uses supplier-specific data. Raw materials (e.g. tea, dairy, sugar, oils) and pack materials purchases, product-related emissions are linked to activity dataon usage to GaBi average emissions data by material, unless supplier-specific data is available. All remaining goods and services use a spend-based methodology
using factors from DEFRA
Spend based methodology, capex spend linked by standard industry codes to spend based emission reporting factors from DEFRA

Scope 3.3: Fuel and energy-related activities

Fuel based

Energy usage as per Scope 1 & 2 linked to GaBi country average transmission losses

Scope 3.4: Upstream transportation and distribution
Scope 3.5: Waste generated in operations

Distance based
Waste-type specific

GLEC (Global Logistics Emissions Council) data linked to individual route distance & mode from supplier to JDE Peet's and JDE Peet's to customer distribution
Based on waste type and disposal route linked to DEFRA emissions data

Scope 3.6: Business travel
Scope 3.7: Employee commuting

Spend based
Distance based
Average data

Use distance / mode data linked to GaBi data sets for when data is available from central travel agent (majority of data)
Use fuel-based spend for rental cars from expense system. Use spend based for other travel from expense data
Based on average DE public commuting data linked to average emissions per transport type and distance
Data adapted by employees in operations (no WFH) and those in wider business (hybrid working but working to WFH policy)

Scope 3.8 : Upstream leased assets

Not applicable

Scope 3.9: Downstream transportation & distribution

Average data

Scope 3.10: Processing sold products

Not applicable

Scope 3.11: Use of sold products

Average productAccount as per the SBTi target for direct energy use of machines sold / leased through JDE Peet's under our operational control. This does not include genericequipment used by our consumers to prepare our products.
Use servings sold by the professional business within both the Beans and Liquid categories, as proxies for the servings prepared in JDE Peet's equipment, andapply regional location-based data to these servings to the average energy use per serving type. For other vending machines use average energy / machine.
For e-commerce machine sales - take sales and apply average energy use in the lifetime of that machine, in the year of sale, based on region of sale and regional
average location-based electricity data.

Scope 3.12: End-of-life treatment of sold products

Average product

Assume EU average domestic disposal routes for our products (EuroSTAT)
Using ISO 14040 LCA data on typical products by product category, apply average EOL life data from this to all servings sold in each product category globally.

Scope 3.13: Downstream leased assets
Scope 3.14: Franchises

Not applicable
Average data

Scope 3.15: Investments

Not applicable

Estimated impact per pallet based on customer public report, and retail store impact from retailer scope 1&2 reported data, converted to tonnes of delivered volume

Utilise JDE Peet's Scope 1 & 2 average café data. Apply this to franchise coffee stores where possible by known square footage, or by average coffee store. Note: allcoffee sold through franchises is included in Scope 3.1 reporting as it is provided by JDE Peet's, as is any equipment provided by JDE Peet's to the coffee store. In afranchise, this is all that JDE Peet's has operational control of.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

REPORTING FRAMEWORKS ANDLEGAL DISCLOSURESThis report is compiled in compliance with the Dutch
regulatory requirements.
The financial information in the financial statements has
been prepared in accordance with the International
Financial Reporting Standards (IFRS) as adopted by theEuropean Union. Moreover, the financial information
meets the requirements as set out in Title 9, Book 2 of
the Dutch Civil Code. The Report of the Management
Board (as defined in Title 9, Dutch Civil Code 2) consistsof the following sections: Introduction, Strategy andvalue creation, Performance review and outlook,
Governance and Risk management, excluding theReport of the non-executive Directors and theRemuneration report.

Introduction

Strategy andvalue creation

Performance review
and outlook

This Annual Report follows the elements and principlesof the IIRC Framework. To report its non-financial
performance in a robust and transparent manner, thisreport has been prepared in compliance with the GRI
2021 Standards. The full GRI Content Index is available
as a separate PDF. JDE Peet's adopts therecommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) and of Task Force on
Nature-related Financial Disclosures (TNFD). A TCFD /TNFD reference table is available as a separate PDF.
JDE Peet’s also evaluates its contribution to the UN
Sustainability Development Goals developed by theUnited Nations to assess the impact of its corporate
responsibility programme; references to these goals areprovided in the Double Materiality table.

Governance andrisk management

Financialstatements

Supplementary
information

141

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JDE Peet’s
at a glance

Strategy andvalue creation

Introduction

Performance review
and outlook

OVERVIEW OF OUR NON-FINANCIAL INFORMATIONRESPONSIBLE SOURCING
2023

2022

2021

2020

Responsibly sourced raw materials purchases
Responsibly sourced green coffee

83.8 %

77 %

30 %

21 %

Responsibly sourced tea (and rooibos)

40 %

27 %

32 %

100 %

Responsibly sourced palm oil

100 %

100 %

72 %

11 %

Smallholder farmer engagement
Smallholder reached

700,900

590,000

470,000

300,00

Number of active projects

63

61

50+

30

Active projects in no. of origins

23

22

18

15

3%

*

Deforestation-free main commodities
Mapped coffee-growing plots that are deforestation-free

99.9 %

Deforestation-free virgin pulp & paper (%)

34.4 %

Animal welfare - Cage-free eggs
Cage-free eggs (directly) purchased*No KPI was disclosed for prior years due to lack of data availability for these2%

Governance andrisk management

Financialstatements

Supplementary
information

142

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at a glance

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Performance review
and outlook

Governance andrisk management

Financialstatements

143

Supplementary
information

MINIMISING FOOTPRINT
2023

2022

2021

2020

Total Scope 1 & 2 GHG emissions (market based, tCO2e)421,670

454,877

509,878

537,263

Emissions covered by ETS (Scope 1)

96,962

Total Scope 1, 2 & 3 GHG emissions (market based, tCO2e)4,551,236

5,034,520

4,894,300

5,064,338

Allocated allowances

18,950Total GHG intensity (in tCO2e/t of production) (market based, tCO2e)

6.7

7.1

6.6

7.0

Purchased allowances

78,012

Total GHG intensity (in kgCO2e/ € of revenue) (market based, tCO2e)

0.56

0.62

0.70

0.62

Environmental Management System

326,791

344,841374,250

377,443

Total number of manufacturing facilities
Manufacturing facilities certified against ISO 14001

GHG emissions

2023

2022

2021

2020

42

4340

43

44

23

22

20

18
2,497,175

Emissions Trading Schemes

Scope 1: Direct emissions (tCO2e)
Scope 2: Indirect emissions, purchased energy (tCO2e)– Location based

137,371– Market based

157,127

159,255

164,033

Energy41
Total energy consumption within the organisation (in MWh)

94,879110,036

135,628

159,820

2,356,882

2,448,158

2,529,195

Scope 3: Indirect emissions, value chain (tCO2e)4,129,565

4,579,643

4,384,422

4,527,075

Total energy intensity (in MWh/t of production) 42

3.5

3.4

3.4

3.5

– Scope 3.1: Purchased goods & services

3,333,387

3,780,625

3,552,062

3,695,136

Total energy intensity (in kWh/€ of revenue) (sector c10.83)

0.29

0.30

0.36

0.30

– Scope 3.2: Capital goods

171,043

149,571

163,477

167,356

Total direct fuel consumption within the organisation (in MWh)

1,939,828

1,987,478

2,073,458

2,034,792– Scope 3.3: Fuel and energy-related activities

97,206

104,024

112,343

103,788– Direct non-renewable fuel consumption (in MWh)

1,580,528

1,629,128

1,752,216

1,760,094– Scope 3.4: Upstream transportation and distribution

200,036

208,082

207,691

226,849– From natural gas

1,419,324

1,464,786

1,586,888

1,588,667– Scope 3.5: Waste generated in operations

1,134

1,433

1,308

2,716

– From coal

36,52966,46180,057

93,560– Scope 3.6: Business travel

14,893

11,526

4,634

3,441

– From other energy sources

124,675

97,88285,271

77,866359,300

358,350.0

321,242.0

274,699.0

19 %

18 %

15 %

14 %

345,418

366,630.0

362,050.0

364,061.0– Scope 3.7: Employee commuting

9,846

9,623

9,658

9,044

Direct renewable fuel consumption (in MWh)

– Scope 3.9: Downstream transportation and distribution

87,89095,263

103,549

98,511

Direct renewable fuel consumption (in %)– Scope 3.11: Use of sold products

34,766

22,10023,85815,871

Total electricity purchases (in MWh)

– Scope 3.12: End-of-life treatment of sold products– Thereof from renewable sources (in %)173,228

192,256

200,404

197,235

49 %

49 %

16 %

3%

– Scope 3.14: Franchises

6,134

5,139

5,437

7,128

Total third-party heat & steam purchases (in MWh)

75,567

99,265

101,958

105,908

Scope 1 & 2 GHG emissions reduction from a 2020 base year

21 %

15 %

5%

—%

Total direct and indirect energy from renewable sources (in MWh)

527,144537,501

380,377

275,499

Scope 3 GHG emissions reduction from a 2020 base year

9%

(1)%

3%

—%

Total direct and indirect energy from renewable sources (in %)

22 %

22 %

15 %

11 %

Location based (For info not SBTi Target)
Total Scope 1 & 2 GHG emissions (location based, tCO2e)464,162

501,968

533,505

541,476

Total Scope 1, 2 & 3 GHG emissions (location based, tCO2e)4,593,727

5,081,610

4,917,927

5,068,551

Total GHG intensity (in kgCO2e/ € of revenue) (location based, tCO2e)40

Two of the manufacturing facilities were recent acquisitions and therefore out of scope.
Note that the energy was reported in PJ in 2022.
42
It includes energy consumption within and outside of the organisation.
41

0.56

0.62

0.70

0.62

JDE Peet's N.V.
Annual Report 2023

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at a glance

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Performance review
and outlook

Governance andrisk management

Financialstatements

144

Supplementary
information

2023

2022

2021

2020

Total packaging volume (in kt)

289.37285.33297.19296.48– Glass108.22105.83113.11120.05

Design 100% of our packaging to be reusable, recyclable orcompostable (as percentage of total weight)

79 %

78 %

77 %

73 %

– Paper & cardboard

93.61

91.00

86.40

83.19

– Glass

37 %

37 %

38 %

38 %

– Bioplastic plastics

1.87

1.69

1.61

1.27

– Paper & cardboard

29 %

28 %

25 %

22 %

24.32

– Plastics (aggregated including bioplastics)

2%

2%

2%

2%

5.37

– Aluminium

2%

2%

2%

2%

—%

—%

—%

—%

Packaging– Combined plastics– Aluminium

2023

2022

2021

2020

Progress against our sustainable packaging 2030 targets

22.97
5.56

24.26
5.39

25.06
5.89

– High-density polyethylene (HDPE)

0.18

0.15

0.38

0.51

– Steel– Low-density polyethylene (LDPE)

3.17

3.26

3.73

4.15

– Textile

—%

—%

—%

—%

– Polyethlyene Terephthalate (PET)

0.32

0.42

0.34

0.46

– Wood

9%

9%

10 %

10 %

– Polyproplyene (PP)

19.57

19.71

22.29

21.07

– Other

—%

—%

—%

—%

35 %43

35 %

30 %

27 %

– Polystyrene (PS)

0.16

0.17

0.13

0.08

Use of recycled content in our packaging (as percentage of total– Steel

0.76

0.86

1.07

0.95

– Glass

17 %

18 %

14 %

13 %

18 %

17 %

16 %

14 %

– Textile

0.04

0.04

0.04

0.05

– Paper & cardboard– Wood

31.33

30.95

35.08

32.93

– Plastics (aggregated including bioplastics)

—%

—%

—%

—%

– Other

1.62

1.61

2.04

2.08

– Aluminium

—%

—%

—%

—%

117.39– Steel

—%

—%

—%

—%

179.09– Textile

—%

—%

—%

—%

—%

—%

—%

—%

—%

—%

—%

—%

Total renewable packaging materials (in kt)*
Total non-renewable packaging materials (in kt)*

126.81162.56

123.64161.70123.09174.10Virgin plastic (in kt aggregated including bioplastics)

47.99

49.42

53.31

51.57

– WoodPackaging intensity (in g/cup)**

2.20

2.07

1.98

2.03

– Other43

It includes supplier verified data (no industry averages applied as in 2021 and 2020).
* Material fractions include bioplastics, paper & cardboard, wood** JDE only excluding Yangon, Arsin, Duzce

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Strategy andvalue creation

Introduction

Performance review
and outlook

Governance andrisk management

Financialstatements

145

Supplementary
information

2023

2022

2021

2020

Halve our total waste (vs 2020)

(37)%

(20)%

(16)%

—%

Total withdrawal (million cubic metres)

6.60

6.91

7.14

7.16

Waste-to-landfill

1.1 %

1.3 %

0.7 %

2%

% withdrawal, municipal

77 %

77 %

77 %

77 %

89 %

% withdrawal, groundwater

23 %

23 %

23 %

23 %

% withdrawal, surface water<0.01%<0.01%<0.01%<0.01%

Manufacturing waste

Waste diverted from disposal (%)

91 %

90 %

88 %

84,813

107,036

112,914Non-hazardous waste in tonnes

83,926

106,393

112,121

133,530

0

0

0

0

– Recycling

12,092

10,99615,033– Other recovery

65,00685,73384,121– Incineration

5,931

8,186

12,165884

1,427– Landfill

2022

2021

2020

Water in manufacturing

Total waste generated (metric tonnes)– Reuse2023

133,842

Manufacturing facilities in water-stressed areas

11

12

12

15

Withdrawal in water-stressed areas (million cubic metres)

0.90

0.94

0.96

1.06

13,482% withdrawal, municipal

99 %

99 %

98 %

99 %

105,081% withdrawal, groundwater

1%

1%

2%

1%

11,073% withdrawal, surface water

0%

0%

0%

0%

723

2,103

Water intensity (in m3/tonne of production)

9.8

9.7

9.6

9.9
874

– Other disposal

13

61

79

1,792

Water intensity (in m3/million € of revenue)

806

848

1,020

Hazardous waste in tonnes

887

643

793

312

Total consumption (million cubic metres)

1.4

n/a

n/a

n/a

0

0

0

0

Consumption in water-stressed areas (million cubic metres)

0.30

n/a

n/a

n/a

657

518

702

123

Total water discharge

5.20

5.50

5.80

5.40

0

0

0

0

% discharge to public sewer

63 %

62 %

62 %

62 %

– Incineration

142

125

56

42

% discharge to surface water

37 %

38 %

38 %

38 %

– Landfill

35

0

36

20

% discharge to other (e.g. truck)<0.01%<0.01%<0.01%<0.01%% manufacturing operations with access to safely managed Water,
Sanitation and Hygiene (WASH) facilities

88 %

n/a

n/a

n/a

– Reuse– Recycling– Other recovery– Other disposal

53

0

0

127

% of non-recycled waste

1.2 %

1.4 %

0.7 %

3.0 %

Waste intensity (t/t of production)

0.13

0.15

0.15

0.19

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Strategy andvalue creation

Introduction

Performance review
and outlook

Governance andrisk management

Financialstatements

146

Supplementary
information

CONNECTING PEOPLE
2023

2022

2021

2020

Our workforce at 31 December

2023

2022

2021

2020

Global Leadership Team

35

34

34

35

101

96

93

89

No. of employees44

21,196

20,71021,027

20,231All employees (Total)% Permanent

96.3 %

95.3 %

93.3 %

93.0 %Engagement% Temporary

3.7 %

4.7 %

6.7 %

7.0 %

Engagement survey participation rate

85 %

83 %

88 %

*

% Full-time

78.4 %

79.1 %

79.6 %

81.3 %

Employee Workplace Experience Indicator

77 %

75 %

*

*

% Part-time

21.6 %

20.9 %

20.4 %

18.7 %

Talent*No. of external contractors45

3,039

3,001

3,275

3,098

Average training hours per employee

New hires in the year

25.6 %

32.1 %

30.4 %

16.8 %

Average spent for training per employee47

Internal fill rate - Global Leadership team

61.5 %

52.8 %**

Average spent for recruitment per employee48

Internal fill rate - All employees (Total)

27.6 %

26.7 %**

Turnover rate

28.1 %

32.3 %

32.4 %

25.2 %% of employees receiving regular performance and careerdevelopment reviews

46

Share of women at 31 December
Non-executive Directors
Leadership positions (%)
Leadership positions (Headcount)
Executive Committee

38.5 %
41.3 %

38.5 %
41.0 %

23.1 %
36.2 %

23.1 %
*

129

*

*

*

36.4 %

33.3 %

25.0 %

36.4 %

Global Leadership team

41.5 %

41.2 %

36.7 %

35.5 %

People managers

40.2 %

37.9 %**All other employees

43.0 %

43.0 %

43.0 %

41.7 %All employees (Total)

42.6 %

42.3 %**

Nationalities at 31 December
Non-executive Directors

8

8

10

10

Executive Committee

8

8

8

8

44

23

23

12

€ 279,77€291.03**€ 1.182,13€820.55

*

*

86 %

86 %

*

*

35 %

*

*

*

51 %

*

*

*

34.0 %

34.0 %

34.0 %

33.0 %

Internal manufacturing sites certified to internationally recognised
certification body

29

28

27

23

External manufacturing sites certified to internationally recognised
certification body% of target population covered by Rise Leadership Programme (middle
managers)% of target population covered by Elevate Leadership Program (seniorCollective bargaining
People covered by collective bargaining agreements
Food safety and quality

69

61

*

*

Manufacturing sites certified to internationally recognised certificationbody (%)

85 %

75 %

63 %

52 %

Production volume from sites certified to internationally recognised
food and safety standards (%)

86 %Employees of all consolidated entities of JDE Peet's have been included, with no significant difference year on year. Refer to note 1.1 Reporting entity of the Consolidated Financial Statements.
The most common types of external workers cover activities such as: facilities and other outsourced activities, transactional activities in finance, IT contractors, operators servicing coffee machines (Out-of-home) and manufacturing temporary labour. No significant difference year on year.
46
Excludes employees that indicated their gender as "undisclosed" or "other" (which represents 0,8% of the total workforce) as we acknowledge that gender is not binary. This exclusion applies to all tables where gender is reported.
47
The scoping exclusion below does not apply to these KPIs.
48
The scoping exclusion below does not apply to these KPIs.
45

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Strategy andvalue creation

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Performance review
and outlook

Governance andrisk management

2023

2022

2021

2020

0.59

0.46

0.56

0.61

Financialstatements

147

Supplementary
information

At 31 December 2023

Human capital (Headcount)

Occupational health & safety

GenderTotal Recordable Incidents Rate (per 200,000 hours worked) - total

RegionAPAC

Peet's

Total

Number of work-related injuries - total49

60

Number of employees

7,236

9,751

6,589

3,367

2,791

4,381

17,128– Number of work-related injuries - Employees49

44

Number of permanent employees

6,936

9,413

6,187

3,323

2,599

4,381

16,490– Number of work-related injuries - Contractors49

16

Number of temporary employees

300

338

402

44

192

0

638

50

Women

Men

Europe LARMEA

Lost-Time Injury Frequency Rate (LTIFR) - total

0.31

Number of full-time employees

4,940

8,467

5,990

3,351

2,689

1,391

13,421– LTIFR - Employees50

0.25

Number of part-time employees

2,296

1,284

599

16

102

2,990

3,707

– LTIFR - Contractors50

0.48

Workplace fatalities - employees

151

0

0

Workplace fatalities - contractors52

0

0

0

0

Manufacturing facilities with ISO 45001 certification

22

19

17

17

0

Pay equity
Pay equity-gap<1 %Gender diversity - Additional data (%) at 31 December 2023

Women

Men

Junior people managers

39.5 %

60.5 %

People managers - revenue generating functions53

38.5 %

61.5 %All employees STEM54

54.8 %

45.2 %<30 years old

30-50 years old>50 years old

Executive Committee

Generations (%) at 31 December 2023—%

27.3 %

72.7 %

Global Leadership team—%

58.3 %

41.7 %

28.0 %

50.7 %

21.3 %All employees (Total)

49

No KPI was disclosed for prior years due to lack of available data for these periods
It only includes JDE manufacturing sites
51
This incident corresponds to the supply chain area, the scope of the rest of OH&S indicators covers manufacturing units.
52
There was one fatal accident involving a subcontractor of a contractor at one of our stores in 2023.
53
All employees holding Sales & Marketing functions.
54
All employees holding R&D functions.
50

Ethnicity (%) at 31 December 2023 (Peet's
Coffee US)

AsianBlack or African
AmericanHispanicor Latino

White

Non
Other specified

All employees (Total)

11.1 %

4.9 %

27.0 %

43.0 %

6.8 %

7.2 %

Global Leadership Team

6.3 %

1.3 %

3.8 %

74.7 %

2.5 %

11.4 %JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

2023

GenderRegionEmployee Group

Involuntary
turnover rate (%)

Region148

Supplementary
information

Number of employees receiving regular performance and career development reviews, per gender and age (1 January - 31
December 2023)

Turnover rate (%)
Women

33.3 %

26.2 %

7.0 %<30 years old

30-50 years old>50 years old

Total

Men

23.8 %

14.7 %

9.1 %

Women

1.712

3.422

1.102

6.236

< 30 years old

55.5 %

46.4 %

9.1 %

Men

1.524

4.718

2.203

8.445

30 - 50 years old

18.9 %

11.5 %

7.5 %> 50 years old

15.2 %

6.2 %

9.0 %

APAC

29.7 %

19.1 %

10.6 %

Europe13.8 %

7.1 %

6.8 %

LARMEA

16.9 %

7.9 %

9.0 %

Peet's

57.4 %

49.2 %

8.2 %Global Leadership Team12.4 %

5.4 %

7.0 %

Leavers(Headcount) Hires (Headcount)

Generations

Financialstatements

Voluntary
turnover rate (%)

2023

GenderGovernance andrisk management

Women

2,445

2,134

Men

2,373

1,817

< 30 years old

2,632

2,739

30 - 50 years old

1,707

1,171

> 50 years old

556

182

APAC

868

633

Europe926

733

LARMEA

575

567

Peet's

2,526

2,527

Total

4,895

4,092

Number of employees receiving regular performance and career development reviews, per employee group (1 January - 31
December 2023)
Executive Committee

12

Global Leadership Team

286

People Managers

809

Junior People Managers

995

Associates

12,630All employees (Total)

14.732

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Countries with Collective bargaining agreement and social dialogue in place at 31 December 2023

Coverage rate

Collective bargaining agreement

Social Dialogue

Employees - EEAWorkspace representation(EEA only)

0-19%

Own workforce - Non-EEA
APAC Region
US Region
UA-EEMA Region

20-39%

PolandYes

DenmarkYes

40-59%

UK

Yes

60-79%

Czech Republic

Yes

80-100%Netherlands

Yes

Spain

Yes

SwedenYes
NorwayYes

FranceYes

Belgium

Yes

Romania

Yes

Germany

Yes
BrazilYes

Scoping adjustment for Connecting People KPIs
All consolidated entities of JDE Peet's, apart from a small portfolio of entities contributing 5% of total revenue andapproximately 19% of total employees, have been included. This does not apply to the total number of employees,
where all employees of consolidated entities of JDE Peet's have been included.

Governance andrisk management

Financialstatements

Supplementary
information

149

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

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Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

150

Restatement of information
During 2023, we took additional steps to improve our non-financial data quality and collection. As part of this process,we have revised our methodology and definitions for certain KPIs within our Minimising Footprint and Connecting
People pillars. The following material changes were made:Change in methodology

Impact of restatement

Minimising Footprint
Scope 1: Direct emissions (tCO2e)

Base year has been restated to include impact of entities that are now part of JDE Peet's ; (Campos & Les 2 Marmottes) & updated (0.4)%
emission factors

Scope 2: Indirect emissions, purchased energy - market based

Base year has been restated to include impact of entities that are now part of JDE Peet's ; (Campos & Les 2 Marmottes)
Emission factors have been updated to most recent DEFRA / IEA factors (including all prior years data)+3%

Scope 3.1: Purchased goods & services'-Green coffee emissions previously used an assumption that certified coffee came land-use change and burden free. This has
been changed to reflect that no certification schemes commit to being deforestation-free in 2000
-Addition of spend-based impact related to addition of all entities (12Oz / Maison Lyovel /JobMeal / Campos) all years-Restatement of raw material usage - through improved automated tools replacing manual estimates-Replacement of revenue uplift estimates for missing data, with category average material usages related to missing data linked toknown production volumes rather then revenue basis
Correction on spend based reporting & Update Instant coffee emission factors aligned with updated green coffee data

Estimated at +160,000 tonnes on base year and subsequent years
reporting data (+ 4% JDE Peet's total)
Addition Maison Lyovel / 12Oz / Campos / JobMeal + 45kt (3.1&3.2)(+1.4% JDE Peet's total)
Spend correction and updated raw materials data and Instant coffee
emission factor + 50kt (+1% JDE Peet's Total)

Scope 3.4 & 3.9

Updated GLEC emission factors related to higher well-to-tank emission factors, correction of missing routes in base year andsubsequent years. All JDE Peet's inbound and outbound included under 3.4. Addition in reporting of Customer logistics and retail
outlet impacts included in downstream 3.9, not previously reporting

10% increase in logistics reported impact 3.4
Customer logistics & retail impact approx 80kT (2% increase in total JDE
Peet's Scope 3)

Scope 3.11: Use of sold products

Addition of vending machines sold / leased by Maison Lyovel & JobMeal

Minor <0.1% JDE Peet's total

Scope 3.14 Franchises

Addition of 12Oz and Cafe do Ponto previously not included

Minor <0.1% JDE Peet's total

Intensity indicators– Total GHG intensity– Total energy intensity– Waste intensity– Water intensity

Production volumes for 2020 base year were incorrectly stated and have been reset

intensity reduction lower than previously shown - approximately 5%
missing volume from 2020 base year data.

Total packaging volume (in kt)– Weight of wood (pallets) has been included in total packaging weight annually dating back to 2020

Increased total packaging weight on average 32,6kt annually between
2020-2023. No impact to carbon accounting as pallet weight reported
through spend

Total packaging volume (in kt)– Assumptions of missing packaging weight for plants not integrated into JDE ERP software were included using weight offinished goods sold, serving size per product category, and average packaging intensity per material type2020 - 10.13kt increase
2021 - 8.74kt increase2022 - 8.78kt increase2023 - 8.23kt increase

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

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Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

151

Change in methodology

Impact of restatement

Total packaging volume (in kt)– Externally manufactured (EM) products were previously excluded due to lacking data accessibility. EM finished goods weight isapproximately 1.47% of total sold. All packaging material fractions were uplifted by 1.47% dating back to 2020. This will be
removed in 2024 annual report as EM volume will be in sourced into the company's global packaging consumption model

1.47% increase across all material fractions

Total packaging volume (in kt)– 6 months of sales generated from three plants in APAC during 2020 were captured manually & now accounted for using weightof finished goods sold, serving size per product category, and average packaging intensity per material type2020 - 3,07kt increase

Design 100% of our packaging to be reusable, recyclable orcompostable (as percentage of total weight)– Weight of wood (pallets) has been included in KPI scope dating back to 2020, missing packaging weights for plants not
integrated into JDE ERP, 6 months manual APAC data in 2020, externally manufactured uplift

Weight of wood has negligible impact, inclusion to be consistent with total
packaging weight. Inclusion of plants, missing data, EM uplift decrease
RRC each year:
2020 -4.52%
2021 -3.50%
2021 -3.65%2023 -3.50%

Use of recycled content in our packaging (as percentage of total
weight)– Weight of wood (pallets) has been included in KPI scope dating back to 2020, missing packaging weights for plants not
integrated into JDE ERP, 6 months manual APAC data in 2020, externally manufactured uplift

Weight of wood resulted in lower recycled content scores by 4% for eachyear dating back to 2020. Inclusion of plants, missing data, EM uplift
decrease results by ~1% year over year.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

GOVERNANCE
AND RISKMANAGEMENT
Our Board of Directors

153

Report of the non-executive Directors

157

Our Executive Committee

162

Corporate governance164

Corporate governance statement

170

Remuneration report

179

Ethics and compliance188

Responsible tax

193

Risk management

195

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementory
information

152

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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and outlook

Governance andrisk management

Financialstatements

153

Supplementary
information

OUR BOARD OF DIRECTORS
Our company has a one-tier board, which meansthat the Board of Directors (the "Board") is theexecutive and supervisory body of the company.
The executive Director is responsible for thecompany's day-to-day management. The nonexecutive Directors supervise and advise theexecutive Director and oversee the generalcourse of affairs, strategy, operational
performance and corporate governance of thecompany and are responsible for the company's
sustainable long-term value creation. Each
Director owes a duty to the company to act in
the corporate interest of the company and its
affiliated enterprise, taking into account the
impact the actions of the company and its
affiliated enterprise have on people and theenvironment and, to that end, weighing theinterest of all its stakeholders. More information
about the responsibilities and functioning of theBoard can be found in the Board Rules (asadjusted in 2023).
More detailed biographies of our Board of Directors
can be found on JDE Peet’s website.

EXECUTIVE DIRECTOR

FABIEN SIMONCHAIRMAN OF THE BOARD

OLIVIER GOUDETNON-EXECUTIVE DIRECTORSJOACHIM CREUS

French (1971), man

French (1964), man

Belgian (1976), man

Executive Director and CEO

Non-executive Director and Chairman of the Board

Non-executive Director

First appointed in 2020

Non-independentNon-independent

Principle position: CEO JDE Peet’s N.V.

First appointment 2020, end of current term AGM 2026

First appointment 2020, end of current term AGM 2025

Previous positions: non-executive Director of thecompany, partner at JAB. Chairman of National
Veterinary employees. Chief financial officer of JDE(2014-2019), 13 years at Mars, Incorporated in various
leadership roles, including Asia-Pacific corporate staff,
vice president, chief financial officer of Petcare Europe,eight years at Valeo in a variety of leadership roles.

Principle position: senior investment advisor of JAB

Principle position: managing partner and the CEO andvice-chairman of JAB.

Other board memberships: chairman of the board of
Krispy Kreme, member of the board of directors of
Keurig Dr Pepper, Coty and several JAB controlled
companies.
Previous positions: CEO and managing partner at JAB,a position he held from 2012 until 2023, various roles atMars, Incorporated, including CFO, executive vicepresident and Group CFO, adviser to the board of
directors of Mars, Valeo, chair of the board of Anheuser
Busch InBev SA/NV.

Other board memberships: member of the board of
directors of Coty and several JAB controlled
companies.
Previous positions: a number of executive officer roles
at several JAB holding entities, various legal- and taxrelated positions at Siemens, Rödl & Partner andTiberghien Lawyers.

JDE Peet's N.V.
Annual Report 2023

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at a glance

LUC VANDEVELDEIntroduction

Strategy andvalue creation

Performance review
and outlook

PETER HARF

Governance andrisk management

Financialstatements

154

Supplementary
information

DENIS HENNEQUINANA GARCÍA FAU

Belgian (1951), man

German (1946), man

French (1958), man

Spanish (1968), woman

Non-executive Director and Lead Independent
Director, member of the Audit Committee andmember of the Remuneration, Selection andAppointment Committee

Non-executive Director and member of theRemuneration, Selection and Appointment
Committee

Non-executive Director and member of theRemuneration, Selection and Appointment
Committee

Non-executive Director and member of the Audit
Committee, Board Sustainability Contact

Non-independent

IndependentFirst appointed in 2020

First appointment 2020, end of current term AGM 2024

Principle position: chair and a managing partner at JAB.

Principle position: founding partner of French Food Capitaland a founder of The Green Jersey consulting firm.

Independent
IndependentFirst appointment 2020, end of current term AGM 2026
Principle position: founder and chair of Change CapitalPartners LLP.
Other board memberships: chair of Change CapitalPartners LLP, chair of Majid Al Futtaim Leisure &Entertainment and Cinemas.
Previous positions: chair of Marks and Spencer Groupplc, senior independent director of Vodafone Group plc
and chair of its remuneration committee, non-executive
director Vodafone Group plc, director of SociétéGénérale S.A., chair of Carrefour, various positions at
Kraft Foods for 24 years in Europe and the UnitedStates in finance, business development and mergers
and acquisitions, CEO of Kraft Jacobs Suchard’s
French and Italian operations.

First appointment 2022, end of current term AGM 2026

Other board memberships: chair of the board of
directors of Coty, member of the board of directors of
Keurig Dr Pepper.
Other positions: founder of Delete Blood Cancer DKMS.
Previous positions: chair of Anheuser-Busch InBev SA/
NV, member of the board of directors of Burger King,
deputy chair of Reckitt Benckiser, CEO of Coty.

Other board memberships: vice chairman and memberof the remuneration committee of Pret A Manger, nonexecutive director and chair of the remunerationcommittee of Bakkavör Group plc; non-executive
director and member of the remuneration committee of
Espresso House, non-executive director of KellyDeli
Company Limited and Elior.
Previous positions: partner for Cojean Limited,president and managing director of McDonald’s France,president of McDonald’s Europe, independent board of
director Accor SA, executive director of Accor SA, CEO
Accor SA. Member of boards of directors of John Lewis
Partnership plc, SSP Group plc and Eurostar
International Limited. Chairman of the board of Picard
Surgeles SAS.

Principle position: non-executive director at Merlin
Properties SA (Spain), Gestamp Automation SA (Spain)
and Celinex Telecom (Spain).
Other board memberships: non-executive chairperson
and chair of the remuneration committee at Finerge SA(Portugal), member of advisory boards at Swiss bank
Pictet (Iberia), Salesforce (EMEA) and the McKinsey
Alumni Council (Spain); is an external advisor to
Cosentino Group in Spain.
Previous positions: CEO of Yell for the Spanish and
Latin American businesses before expanding her role to
the US Hispanic market, chief corporate development
officer and CFO of TPI (Yellow Pages & Digitalbusinesses) at the Telefónica Group, member of theboard and member of audit and risk committee ofEutelsat Communications SA and Technicolor SA(France), DLA Piper LLP (UK) and Globalvia SAU(Spain).

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

STUART MACFARLANE

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

155

Supplementary
information

LAURA STEIN

AILEEN RICHARDS

British (1967), man

American (1961), woman

British (1959), woman

Non-executive Director and Chair of the Audit
Committee

Non-executive Director and member of theRemuneration, Selection and Appointment
Committee, Board Sustainability Contact

Non-executive Director and Chair of theRemuneration, Selection and Appointment
Committee

IndependentNon-independentFirst appointed in 2020
Principle position: director of NOMAD Foods Europe
Limited.
Previous positions: various senior roles at AnheuserBusch InBev SA/NV, managing director, Ireland,president of AB InBev UK and Ireland in 2008, president
Central and Eastern Europe based in Moscow of the
global executive board, Whitbread Beer Company (later
acquired by Interbrew SA/NV). Most recently served as
Anheuser-Busch InBev’s President, Europe and Middle
East from 2014 to 2019.

First appointment 2022, end of current term AGM 2026
Principle position: executive vice president, corporate &legal affairs, general counsel and Corporate Secretaryof Mondelēz International, Inc.
Other board memberships: board member of several
non-profit organisations including the Pro Bono Instituteand CEELI Institute, member of the American Law
Institute Council, the leaders council of the Legal
Service Corporation and the advisory board of theHarvard Law School Center on the Legal Profession andCorporate Pro Bono, where she serves as co-chair.

Previous positions: executive vice president, general
counsel & corporate affairs for The Clorox Company,
member of the Clorox Executive Committee, presidentof The Clorox Company Foundation, sponsored
Clorox’s cybersecurity and enterprise risk management
programs and the Clorox Women’s Employee Resource
Group. senior vice president – general counsel andmember of the senior management committee at the
H.J. Heinz Company, director of Heinz’s Foundation,
former director and former chair of the pension
investment committee and the environmental, safety &security committee of Canadian National Railway,
former director and former chair of the Corporate
Governance Committee of Franklin Resources, Inc.,
former director of Nash Finch Company.

IndependentFirst appointment 2020, end of current term AGM 2024
Principle position: independent non-executive director
on several boards.
Other board memberships: independent non-executive
director on several boards, including Pret A Manger
and Samworth Brothers (Holdings) Limited.
Previous positions: senior executive and executive vicepresident at Mars, Incorporated, responsible for thehuman resources strategy, led Mars Global Services(Mars IT, Mars Financial Services and Mars AssociateServices), various senior international roles inprocurement and manufacturing at Mars, Incorporated.
Independent non-executive director of Mars Nederland
B.V.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

PAULA LINDENBERG
Brazilian (1975), woman
Non-executive Director
Independent

Introduction

Strategy andvalue creation

Performance review
and outlook

PATRICIA CAPEL

Previous positions: Unilever, Johnson & Johnson and
AB Inbev, multiple brand and category leadership rolesat AB Inbev in Brazil, lead global insights in New York.
Following this, chief marketing officer of AB Inbev in
Brazil, president of AB Inbev for the UK, Ireland andSpain.

Financialstatements

JEROEN KATGERT
Dutch (1968), man

Non-executive Director

Non-executive Director and member of the Audit
Committee

Non-independentNon-independentFirst appointment 2023, end of current term AGM 2027
Principle position: partner at JAB.
Previous positions: 25 years at AB InBev and Ambev innumerous roles, most recently led commercial
operations in Chile, Bolivia and Paraguay. Extensive
global experience including in the United States,
Russia, Latin America, Belgium and Canada. Also held
positions at PWC and Cargill Agricola.

156

Supplementary
information

Brazilian (1972), woman

First appointment 2022, end of current term AGM 2026
Principle position: managing director of Diageo in Brazil.

Governance andrisk management

FRANK ENGELEN
Dutch (1971), man
Non-executive Director and member of the Audit
Committee
Non-independentFirst appointment 2020, end of current term AGM 2025

First appointment 2023, end of current term AGM 2027
Principle position: senior vice president finance,
Mondelēz Europe.
Previous positions: various leadership positions at
Mondelēz, including vice president commercial andFP&A, vice president finance Coffee Europe and vicepresident finance 'Project One Europe', 16 years at
Unilever in a variety of roles, including vice president
finance Unilever, supply chain Europe and financedirector M&A and treasury.

Principle position: managing partner and the chief
financial officer of JAB.
Other board memberships: member of the board of
directors of several JAB controlled companie.
Previous positions: partner at JAB in September 2020,
senior partner at JAB in September 2022, partner at
PwC for 17 years, including member of the board of
PwC Netherlands for five years and member of theboard of PwC Europe for two years.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

157

Supplementary
information

REPORT OF THE NON-EXECUTIVE DIRECTORSINTRODUCTION
This report provides further information on the way weperformed our duties in 2023.
We strive to create a culture that contributes to thelong-term value creation of the company, and it is our
responsibility to adopt common values focused onsustainable long-term value creation.

CHANGES TO THE COMPOSITION OF
THE BOARD
At the AGM held on 25 May 2023, Jeroen Katgert and
Patricia Capel were appointed as non-executive
Directors of the company. They have temporarily filledin vacancies on the Board as stand-in non-executive
Directors, Patricia Capel since 26 September 2022, andJeroen Katgert since 11 May 2022. With these new
appointments, the Board broadened its diversity while
introducing additional expertise and knowledge of the
fast-moving consumer goods sector. These new nonexecutive Directors followed an induction programme inthe course of 2022 when they were nominated as
stand-in non-executive Directors. Additional trainings(including on business conduct and anti-bribery andcorruption) have been also offered to the Board and canbe followed at the discretion of the Board.
At the upcoming AGM in 2024, the Board will propose
to the shareholders to appoint

Aileen Richards, Stuart MacFarlane and Denis
Hennequin as non-executive Directors for a second
term of four years.

MEETINGS AND ACTIVITIES OF THE
BOARD

Director and most of the non-executive Directors
followed by an open discussion during a meeting of theBoard led by the Chairman of the Board and covered

its Committees is set out below. All non-executive
Directors set aside adequate time to give sufficientattention to the company’s business.

Non-executive Directors

Attendance atBoard meetings

Attendance at Audit
Committee meetings

Olivier Goudet

7/7

ATTENDANCE

Aileen Richards

7/7

The Board held six meetings in 2023. One additional
Board call was organised to discuss and approve theacquisition of Maratá’s coffee & tea business in Brazil.
In addition, as part of the Board's meeting in
September, which was held in France, the Board visitedthe company's capsules factory in Andrézieux, France.
The CEO attended all Board meetings. Other membersof the Executive Committee, as well as certain Global
Leadership team members, were invited to givepresentations to the Board. The non-executive Directors
held several meetings without other attendees toindependently review and discuss certain matters. In
addition, the Chair and the CEO held regular one-to-one
meetings to discuss progress and key topics. The
Board members had contact with various levels of thecompany's management to ensure that they remained
well-informed about the company’s operations.

Stuart MacFarlane

7/7Peter Harf

5/7

Joachim Creus

7/7

Frank Engelen

7/7

6/6

Luc Vandevelde

7/7

6/6

Jeroen Katgert

7/7

6/6

Laura Stein

5/7

Ana García Fau

7/7

Denis Hennequin

6/7Paula Lindenberg

5/7

Patricia Capel

6/7

The non-executive Directors attended all Board
meetings in 2023, except for a limited number ofoccasions (of which each absence had a valid reason).
An overview of the individual attendance of our nonexecutive Directors at the meetings of the Board and of

BOARD EVALUATION
Each year, the Board assesses its performance,
including with respect to its composition, diversity andhow effectively its members work together, with the aimof helping to improve the effectiveness of thefunctioning of both the Board and the Committees.
In 2023, the Board invited an independent third-party tofacilitate the Board’s evaluation. This evaluationconsisted of individual interviews with the executive

Attendance at Remuneration,
Selection and Appointment
Committee meetings

4/4
6/6
4/4

4/4

4/4
6/6
4/4

both the outcome of the evaluation and proposed
actions to enhance the effectiveness of the Board.
The evaluation included topics such as the compositionand expertise of the Board and its Committees, size of
the Board, strategy, risks, succession planning, accessto information, frequency and quality of the meetings,
quality and timeliness of the meeting materials andinteractions with the company’s stakeholders.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

The outcomes of the Board evaluation were generally
positive and reflected an improvement over the 2021
and 2022 Board self-assessments. The Board is wellmanaged, properly fulfilling its duties andresponsibilities, and follows the appropriate processes
to ensure that the Board is providing the right level ofoversight over the company. The Board was also
positive about the performance of the executive
Director and more generally, its relationship with thecompany's senior management.
The responses provided formed the basis for the
discussion within the entire Board on how to further
leverage the expertise and knowledge on different
topics within the Board, as well as what topics should
receive additional attention in the future.
The Board concluded that it would continue to focus oncontinuously improving Board governance on theidentified topics.

BOARD FOCUS
In 2023, we continued to witness inflation, supply chain
disruptions and geopolitical tensions. Consequently, ourtop priorities included pricing for inflation and supply
chain strategies and resilience in the context of aturbulent geopolitical environment.

Introduction

Strategy andvalue creation

Performance review
and outlook

Other key topics included, amongst others:• Strategy and sustainable long-term value creation:
the Board discussed and advised the managementon the company's Annual Operating Plan which isdedicated towards long-term sustainable growthand profitability through the company's strategic
priorities to be more global, more digital and moresustainable and investments in people,
sustainability, brands, appliances and innovation.
• Business performance: Each quarter, the Board was
updated in detail on the company’s businessperformance including on key financial KPIs andfactors impacting performance, both on a global
level and at segment level. In this context, we
discussed the pricing strategy, the effects ofinflation on our portfolio performance, and theimportance of talent while navigating through supply
chain disruption challenges.
• Financial reporting and governance: the Board
reviewed the company's annual report, the annual
and interim financial statements, the related reports
from our external auditor, as well as theaccompanying press releases. The Board approved
the dividends to be paid to the company’s
shareholders in 2023. Furthermore, uponrecommendations from the Audit and theRemuneration, Selection and Appointment
Committees (as applicable), the Board reviewed andapproved a number of key policies, including thecompany’s Diversity, Equity and Inclusion Policy andthe Board Profile. Furthermore, the Board approved
the Remuneration Policy which will be presented forvote at the AGM in May.

Governance andrisk management••

Financialstatements

158

Supplementary
information

Sustainability: the Board had two dedicatedsustainability updates, as part of which we reviewed
the company's progress on the sustainability
commitments and the strategic initiatives for 2023,
as well as a debrief of investor feedback on our
progress on sustainability commitments from thecapital markets day. The Board recognises thecompany's extraordinary efforts in driving its
sustainability agenda and resulting progress on ESG
improvements (for example, the company's uniquecarbon accounting tool to measure CO2 emissions
per cup) with strongly improved ESG ratings.
M&A and other projects: The Board discussed andreviewed the company's M&A opportunities,
including the acquisition of Maratá’s coffee and tea
business in Brazil, Caribou transaction and otherpartnerships as well as restructuring projects
including the combination of the Out-of-Home and
CPG Europe segments.

CONTINUOUS ENGAGEMENT WITH
STAKEHOLDERS
In performing its duties, the Board acts in accordancewith the interests of the company and the businessconnected with it, taking into consideration the interestsof the company’s stakeholders. Accordingly, having
continuous interactions with the company's
stakeholders is of utmost importance to us.
The Chair of the Board is in regular close contact with
the CEO, as is the Chair of the Audit Committee with
the CFO and the Chair of the Remuneration, Selection
and Appointment Committee with the CHRO.

Furthermore, the Board regularly interacts with themembers of the Executive Committee, who are invited
to be present at Board meetings on specific topics. We
also interact with the company's employees by regularly
receiving information on relevant topics from seniorleaders and experts in the company during committee
meetings, full Board meetings, as part of ongoing
induction programmes or other occasions such as
factory visits.

INDEPENDENCE
We believe it is important to strive for a well-balanced
Board composition that incorporates the rightexperience, competencies and capabilities, and isequipped with a strategic vision that will ultimately
benefit the company and its stakeholders. Board
composition is a critical success factor in enabling
Board members to act critically with a focus on longterm value creation for the company and its
stakeholders.
Without undermining the foregoing, but considering thecompany's shareholder structure (with JAB and
Mondelez being major shareholders), seven out ofthirteen of our non-executive Directors are notconsidered independent within the meaning of bestpractice provision 2.1.8 of the Dutch Corporate
Governance Code. Five of these non-executive
Directors (Olivier Goudet, Peter Harf, Joachim Creus,Frank Engelen and Patricia Capel) are representatives of
JAB, whereas the remaining two (Laura Stein andJeroen Katgert) are representatives of Mondelez.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

However, the majority of both Board Committees are
considered independent within the meaning of the
Dutch Corporate Governance Code.
We are of the view that the experience of our nonindependent Directors in the global food and beverageindustry and the strategic vision they bring, are criticalto the company's success and outweigh any perceived
disadvantage of non-independence.
To further safeguard independence, the company
appointed Luc Vandevelde to act as Lead Independent
Director since the company became public. His main
responsibilities include to (i) act as a sounding board
and provide support in all aspects to the Chair, (ii) act
as mediator in case of a dispute among members of theBoard, (iii) preside over meetings of the Board andshareholders when the Chair is not present, (iv) serve as
a liaison between the independent non-executive
Directors and the Chair and the CEO, (v) provide

Introduction

Strategy andvalue creation

Performance review
and outlook

feedback to the Board on the independent nonexecutive Directors' collective views on the
management, leadership and effectiveness of theBoard, (vi) facilitate effective communication andinteraction between the Board and management, (vii)develop recommendations for the governance setup,
including committee structure, Board and committee
composition and rotations, (viii) ensure effective
communications with shareholders and otherstakeholders, attending meetings where necessary, inorder to understand their issues and concerns; and (ix)be available to shareholders should they wish to shareviews with the Board, other than through the Chair or
the CEO.
In light of the above, the Board is satisfied that thenecessary measures have been taken to protect theBoard’s independence, and we remain committed tomaking further progress on our independence as thecompany’s free float increases.

Governance andrisk management

Financialstatements

Supplementary
information

BOARD COMMITTEES
AUDIT COMMITTEEAt 31 December 2023, Stuart MacFarlane (Chair), Luc
Vandevelde, Jeroen Katgert, Ana García Fau and FrankEngelen were the members of the Audit Committee. The
majority of the Audit Committee members are
independent in accordance with best practice principle
2.3.4 of the Dutch Corporate Governance Code: Stuart
MacFarlane, Ana García Fau and Luc Vandevelde are
independent within the meaning of the Dutch Corporate
Governance Code, whereas Frank Engelen and Jeroen
Katgert are representatives of JAB and Mondelez,
respectively. The members of the Audit Committee as awhole have the relevant experience and competencies
relating to financial matters, all of them have therequired competency in accounting and auditing offinancial statements, and are therefore Audit Committee
Financial Experts within the meaning of best practiceprinciple 2.1.4 of the Dutch Corporate Governance
Code.
The Audit Committee held four regular meetings in
2023, and two additional meetings dedicated to thecompany's full-year and semi-annual financial results.
Throughout the year, the Audit Committee’s Chair also
had several private interactions and sessions with thecompany’s CFO, Group Controller, Group Internal
Auditor, and the company's external independent
auditor. The attendance rate of the Committee
members was 100%.

159

In 2023, the Chair of the Board participated in all
meetings of the Audit Committee, as did most of theother Board members. In addition, the company’s CEO,CFO, Chief Legal and Corporate Affairs Officer andCompany Secretary, as well as the company’s senior
management responsible for group control and internal
audit and representatives of the company’s external
auditor, attended all Audit Committee’s meetings.
The Audit Committee's Chair shared the highlights ofeach Audit Committee meeting with the full Board at theBoard meetings, together with the Committee’s
recommendations on the topics to be approved by the
Board. All Board members had access to all meeting
materials (including the minutes of the Audit Committee
meetings).
Throughout the year, the Audit Committee:• Closely monitored the company's businessperformance. In this respect, the company's CFO
provided updates on the company’s financials at
each Committee's meeting. The Audit Committee
also reviewed the company’s 2023 half-year results
prior to publication, together with the associatedfinancial statements and press release.
• Discussed the company’s internal control systems,(including IT control procedures), ESG-related
disclosures, accounting impact of combining the
Out of Home and CPG Europe segments as well as
the LARMEA goodwill impairment, the company’s
capital structure and debt management and coffee &tea sourcing.

JDE Peet's N.V.
Annual Report 2023

•

•

•

•

JDE Peet’s
at a glance

Was provided with in-depth updates on matterssuch as internal audit, compliance, whistleblower
alert line reports, litigation, tax, treasury and hedging
strategies including in relation to the procurement ofgreen coffee.
Was presented with the update on the Enterprise
Risk Management, including the management's
assessment of IT security and cyber risks, supply
chain business continuity risks and sustainability
related risks, such as climate and nature,
biodiversity and deforestation and human rights due
diligence, as well as inflation and geo-political risks.
Reviewed and endorsed the proposed yearlyInternal Audit Plan, assessed the functioning of theInternal Audit function considering the externalvaluation of the internal audit function done by anindependent third party, and concluded that theCommittee is satisfied with its effectiveness.
Discussed with the company’s independent external
auditor the company’s audit plan, management
letter, audit report, including its scope andmateriality, as well as condensed consolidated
interim and year-end consolidated financial
statements for 2023. Together with the external
auditor, the Audit Committee reviewed the key audit
matters identified by the external auditor, financial
reporting procedures and internal controls.

In 2023, we also deep-dived into a selection of specifictopics, including the company's compliance withapplicable international sanctions adopted against
Russia, the current status of the company's cybersecurity and related mitigation plans, and theIntroduction

Strategy andvalue creation

Performance review
and outlook

company's preparation for the reporting under theupcoming EU Corporate Sustainability Reporting
Directive (EU CSRD) .

Governance andrisk management••

REMUNERATION, SELECTION ANDAPPOINTMENT COMMITTEEAt 31 December 2023, Aileen Richards (Chair), Luc
Vandevelde, Peter Harf, Denis Hennequin and Laura
Stein were the members of the Remuneration, Selection
and Appointment Committee. The majority of theCommittee members are independent in accordancewith best practice principle 2.3.4 of the Dutch Corporate
Governance Code: Aileen Richards, Denis Hennequinand Luc Vandevelde are independent within themeaning of the Dutch Corporate Governance Code,whereas Peter Harf and Laura Stein are representativesof JAB and Mondelez, respectively.

•

•

•

We held four regular meetings of the Remuneration,
Selection and Appointment Committee in 2023. The
attendance rate of the Committee members was 100%.
The Chair of the Board and the company’s Chief Human
Resources Officer participated in all the meetings of theRemuneration, Selection and Appointment Committee.
The Committee's Chair shared the highlights of eachCommittee meeting with the full Board and presented
the Committee's recommendations on the topics to beapproved by the Board.
Throughout the year, the Remuneration, Selection andAppointment Committee:•••

Financialstatements

160

Supplementary
information

Approved bonus targets for 2023 and the bonus
pay-out related to 2022 as well as changes to thecompany's share-based plans.
Discussed and reviewed the performance of the
Executive Committee members.
Received updates on the outcomes of thecompany’s leadership talent review and succession
planning as well as updates on initiatives to further
strengthen the company's diversity, equity andinclusion programme (including on the company's
pay equity).
Reviewed and recommended to the Board to
approve the proposed company's Diversity, Equity
and Inclusion Policy, the proposed changes to theBoard Profile as well as the Directors' Remuneration
Policy (the latter being subject to the approval at the
AGM).
Reviewed the Board's reappointment schedule, andrecommended to the Board to approve thereappointment of Aileen Richards, Stuart
MacFarlane and Denis Hennequin for a second termof four years at the upcoming AGM in 2024.
Together with management, reflected on thecompany’s employee engagement survey result.
Recommended to the Board to approve the grants
to the company’s Directors under the company’s
Long-Term Incentive Plan in accordance with the
Directors’ Remuneration Policy, which was
subsequently approved by the Board.
Reflected on the AGM advisory vote and investor
feedback on the 2022 Remuneration Report
including the progress made since the prior year's
report.

•Undertook its periodic review of remuneration of theexecutive Director in accordance with thecompany's Directors' Remuneration Policy, andrecommended to the Board appropriate
remuneration adjustments, which were subsequently
approved by the Board and are disclosed in the
Remuneration Report.

Overview of the Board committee members

Audit
Committee

Remuneration,
Selection andAppointment
Committee

Olivier Goudet
Aileen Richards
Stuart McFarlane

Chair
Chair

Peter Harf

MemberJoachim CreusFrank Engelen

MemberLuc Vandevelde

MemberJeroen Katgert

MemberLaura Stein
Ana García Fau
Denis HennequinPaula Lindenberg
Patricia Capel

MemberMemberMemberMember

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

ACKNOWLEDGEMENT
We would like to thank all our employees as well as the
Executive Committee for their resilience, dedication andhard work during these unprecedented times.
Non-executive Directors of JDE Peet's N.V.

Olivier Goudet

Peter Harf

Joachim Creus

Denis Hennequin

Ana García Fau

Stuart MacFarlane

Jeroen Katgert

Aileen Richards

Paula Lindenberg

Patricia Capel

Luc Vandevelde

Laura Stein

Frank Engelen

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

161

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

162

Supplementary
information

OUR EXECUTIVE COMMITTEE
FABIEN SIMONKHALED RABBANIEVERT MEINDERTSMALARA BRANS

French

Dutch

Dutch

Dutch

Chief Executive Officer

Chief Legal & Corporate
Affairs Officer

Chief Supply Officer

President APACSCOTT GRAY

JOHAN VAN GOSSUM

ERIC LAUTERBACH

TATIANA EFREMOVA

AmericanBelgianAmericanRussianChief Financial Officer

Chief Human Resources
OfficerPresident of Peet's

President LARMEA

FIONA HUGHESCAROLYN ADAMSJUAN AMAT

Australian

BritishSpanishChief Marketing Officer

Chief Research andDevelopment Officer

President Europe

BRAND HIGHLIGHTSERVES EVERYONE MORE HAPPINESS#1

pod brandin the UK and
Germany#2

pod brand
in France

Tassimo was born in 2004 in
Western Europe and is the result ofwhat happens when great brewers
and great drinks come together toserve everyone more happiness.
With the unique and patented
IntellibrewTM technology, Tassimo
brews all your Coffee Shop favourites
perfectly, every time, at the simple
touch of a button. Tassimo offers awide variety of Barista-quality drinks:
espresso, lungo, americano, milky
coffees, as well as chocolate
and tea from the brands consumers
know and love.

Back to brands overview è

Tassimo is now consumed in morethan 5 million households acrossEurope and continues to bringexciting brewer and drinks
innovations to spark more happinessfor consumers every day.
In 2023, Tassimo fuelled its
partnership with Cadbury and Milka
to bring more indulgent drinks to
consumer's homes through thelaunch of a new Limited Edition
flavour range.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

CORPORATE GOVERNANCE
This section contains an overview of our corporate
governance structure and its functioning. It provides
information on the Board’s role, its functioning andduties, as well as on the company's General Meetingand its capital structure.
As the company is established and listed in the
Netherlands, it must comply with Dutch laws andregulations and is subject to the revised Dutch
Corporate Governance Code of 2022. The company
assessed the revised Code and, where applicable,
revised its relevant policies to comply with the 2022
Code.

GOVERNANCE STRUCTURE
The company is a public company with limited liability
incorporated under the laws of the Netherlands, with its
statutory seat in Amsterdam. At 31 December 2023, theDutch law provisions, commonly referred to as the large
company (structuurvennootschap) regime, did not apply
to the company, and the company does not intend tovoluntarily apply such regime.
The figure depicts the company's corporate governancestructure and the most important governance policies
and regulations at each level.

Governance structure

Supplementary
information

164

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

SHARES AND SHAREHOLDERSSHARE CAPITAL STRUCTURE
The company's ordinary shares have been listed onEuronext Amsterdam since May 2020. At 31 December
2023, the issued share capital of the company
comprised 487,445,857 ordinary shares. Only ordinary
shares were issued.
All issued ordinary shares are fully paid up. The
company did not issue any convertible securities,
exchangeable securities or securities with warrants inthe company.
Other than in respect of outstanding options undercertain company employee share incentive schemes,
the company is not party to any contract orarrangement whereby any option or preferential right ofany kind is (or is proposed to be) given to any person to
subscribe for any ordinary shares in the company. The
company does not operate any employee share scheme
where the control rights are not exercised directly by
the employees as referred to in article 1 sub 1(e) of the
EU Takeover Directive Decree.
The company's authorised share capital amounts to
EUR 20,000,000, consisting of 2,000,000,000 shares,
and is divided into 1,000,000,000 ordinary shares with anominal value of EUR 0.01 each and 1,000,000,000
preference shares with a nominal value of EUR 0.01
each.

Introduction

Strategy andvalue creation

Performance review
and outlook

Each ordinary share and each preference share carries
one vote. Except by virtue of the different voting rights
attached to the ordinary shares and the preference
shares, none of the shareholders has any voting rights
different from any other shareholders. When convening
a General Meeting, the record date is set at the 28th
day before the date of the General Meeting.
The company’s Articles of Association contain nolimitation on the transfer of the company’s ordinary
shares. As regards the preference shares, Article 11.4 ofthe company’s Articles of Association stipulates thatany transfer of such preference shares requires the priorapproval of the Board. More details about the way inwhich measures protecting the company may be set up
can be found in the Anti-takeover measures section inthis chapter.
More information on the company's share capital canbe found in note 5.1 of the Consolidated Financial
Statements in this report.

Governance andrisk management

Financialstatements

Supplementary
information

GENERAL MEETINGThe company’s shareholders exercise their rights
through annual and extraordinary General Meetings.
The annual General Meeting must be held annually in
the Netherlands, no more than six months after the endof the company’s financial year. The company held its
annual General Meeting on 25 May 2023. The relevant
documents related to this General Meeting can befound on the company's website.
An extraordinary General Meeting may be convened by
the Board, whenever the company's interests sorequire. In addition, one or more shareholders
representing (individually or collectively) at least 10% of
the company’s issued and outstanding share capital,
may request to convene an extraordinary General
Meeting in the manner provided by Dutch law. The
company did not hold an extraordinary General Meetingin 2023.
Shareholders holding at least 3% of the company's
issued and outstanding share capital may ask, by amotivated request, that an item be added to theagenda. Such requests must be made in writing andmust either be substantiated or include a proposal for a
resolution. Such requests must be received by the
Chairman or the Lead Independent Director at least 60
days before the date of the General Meeting.

165

One or more shareholders holding (individually orcollectively) at least 1% of the issued and outstanding
share capital or a market value of at least EUR 250,000
may request the company to disseminate information
prepared by them in connection with an agenda item for
a General Meeting in the event the company performed
a formal identification round of the shareholders. The
company may refuse to do so, if received less thanseven business days prior to the day of the General
Meeting, if the information gives or could give an
incorrect or misleading signal or if, in light of the natureof the information, the company cannot reasonably berequired to disseminate it.
Each shareholder (as well as other persons with voting
rights or meeting rights) is entitled to attend the General
Meeting, address the General Meeting and exercise
voting rights, either in person or by proxy.
The General Meeting is chaired by the Chairman of theBoard; or in his/her absence by the Lead Independent
Director or in the absence of the Chair and the Lead
Independent Director, by any Director elected by the
Directors present. The Directors shall be present at theGeneral Meeting, unless they are unable to attend. The
external auditor of the company is also authorised toattend the General Meeting.
At the General Meeting, all resolutions must be adopted
by a simple majority of the votes validly cast without aquorum being required, except for those cases in which
the law or the company’s Articles of Association requirea greater majority or a quorum.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Under the company’s Articles of Association,
resolutions of the Board on major changes in thecompany's identity or character are subject to theapproval of the General Meeting. Such changes include:• The transfer of all or a substantial portion of thebusiness and/or assets of the company to a third
party• Entering into, or terminating, a long-termcooperation between the company or its subsidiary
and another legal entity, if such cooperation or
termination is of fundamental importance to thecompany• Acquiring or disposing, by the company or its
subsidiary, of a participation in the capital of acompany if the value of such participation is at least
one-third of the sum of the assets of the company
according to its consolidated balance sheet andexplanatory notes set out in the last adopted annual
accounts of the company or its subsidiary.

VOTING RIGHTSAt the General Meeting, each ordinary share and eachpreference share carries one vote. As such, norestrictions apply to voting rights attached to shares in
the capital of the company. Under Dutch law, astatutory record date of 28 days prior to the date of theGeneral Meeting applies in order to determine whether
a shareholder may attend and exercise the rights
relating to the General Meeting. Shareholders may be
represented by written proxy.

Introduction

Strategy andvalue creation

Performance review
and outlook

ANTI-TAKEOVER MEASURES
According to the Dutch Corporate Governance Code,the company is required to provide an overview ofexisting or potential anti-takeover measures andindicate in what circumstances these measures may be
used.
In conformity with Dutch law and practice, the company
authorised the Board to implement anti-takeovermeasures, including the possibility to grant the right toacquire the preference shares to an outside foundation,
which aims to protect the interests of the company andits business by preventing anything which may affectthe independence, the continuity or the identity of thecompany (the Protective Foundation) or would be
unnecessarily or unreasonably detrimental to theinterests of the stakeholders of the company. Thisauthority is valid for a period until 2 June 2025. The
Protective Foundation shall pursue its objectives,among other things, by acquiring and holding thepreference shares in the company's share capital andby exercising its voting rights on such preference
shares, as set out below.
At 31 December 2023, and given the present
company's shareholder structure, the Protective
Foundation had not been incorporated.
Once incorporated, the Protective Foundation can be
granted a call option by the company. To that end, theBoard has been authorised (for a period of five years
from the settlement date) to grant the Protective
Foundation the continuous and unconditional right to,Governance andrisk management

Financialstatements

Supplementary
informationeach time, subscribe for up to a maximum number ofpreference shares corresponding to 100% of the issued
ordinary shares outstanding immediately prior to theexercise of the call option, less one. Any preference
shares already held by the Protective Foundation at thetime of the exercise of the call option will be deductedfrom this maximum. The Protective Foundation may
exercise its option right repeatedly, on each occasion
up to the aforementioned maximum, in order to protect
the interest of the company and its business.

RELATED-PARTY TRANSACTIONSIn the course of its ordinary business activities, thecompany’s group of companies enters into transactions
with related parties. More information can be found innote 7.2 of the Consolidated Financial Statements inthis report. The related-party transactions arenegotiated and executed in compliance with mandatory
Dutch law and best practice principle 2.7.5. of the
Dutch Corporate Governance Code and on an arm's
length basis.
The company adopted a Related-Party Transaction
Policy which defines a related party and a related-party
transaction. The Related-Party Transaction Policy isavailable on the company's website. The Related-Party
Transaction Policy requires each Director to notify the
Chair of the Board and the Chief Legal Officer of thecompany of a (potential) related-party transaction inwhich he or she is involved. If the Chair of the Board is arelated party to a (potential) transaction, the Chair shallpromptly notify the Lead Independent Director and theChief Legal Officer.

166

Related-party transactions are subject to review by the
Board. No related-party transactions set out in the
Related-Party Transaction Policy may be undertaken
without the approval of the Board. This approval
includes the affirmative vote of the majority of the
Directors, who are independent within the meaning of
the Dutch Corporate Governance Code and notconsidered to be conflicted with respect to the relevant
related-party transaction. Any Director who has a direct
or indirect personal interest in the transaction, or who isconsidered to be conflicted with respect to thetransaction, cannot participate in the deliberations or
decision-making with respect to the related-party
transaction concerned. The Board may approve therelated-party transaction only if it determines that it is in
the interests of the company and its business.
Amendments to the company’s Related-Party
Transaction Policy require the approval of the Board,
including the affirmative vote of at least one Director
who is independent within the meaning of the Dutch
Corporate Governance Code. For so long as Mondelez
International Holdings Netherlands B.V. (MIHN) is
entitled to designate at least one Director, the RelatedParty Transaction Policy shall not be amended or
terminated without the prior written consent ofMondelez.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

MAJOR SHAREHOLDERSAMENDMENT OF THE ARTICLES OF ASSOCIATIONAt 31 December 2023, Acorn Holdings B.V. and MIHN
were the two largest direct shareholders of thecompany, holding 59% and 18% respectively of theoutstanding share capital of the company. At 31
December 2023, the free float represented 23% of thecompany’s outstanding share capital. More details
about major shareholders can be found in the Investor
Relations section of this report.

The General Meeting may pass a resolution to amend
the company’s Articles of Association, but only upon a
proposal of the Board that has been stated in the noticeof the General Meeting. Such resolution may be
adopted by a simple majority of the votes validly cast,or alternatively by a majority of no less than two-thirdsof the votes validly cast if less than 50% of thecompany's issued and outstanding capital isrepresented at the General Meeting.

INVESTOR RIGHTS AGREEMENTThe Investor Rights Agreement concluded on 25 May
2020 between the company, Acorn Holdings B.V.
(Acorn) and MIHN sets out various topics, including thenumber of Directors MIHN is entitled to nominate forappointment and the arrangements for MIHN's
representation on the Board's committees.
MIHN is entitled to have two non-executive Directors on
the Board. If MIHN, and its group's beneficial
ownership, falls below 8% but remains above 5% of theordinary shares, MIHN will have the right to nominate
only one non-executive Director to the company's
Board. If MIHN, and its group's beneficial ownership,
falls below 5% of the ordinary shares, then MIHN will nolonger have the right to nominate a non-executive
Director to the company's Board.
In addition, for so long as MIHN is entitled to have twoseats on the Board, MIHN is also entitled to designate
the Chair of the company's Audit Committee.

ISSUANCE OF SHARES
Shares may be issued pursuant to a resolution of theGeneral Meeting. The General Meeting may also delegate
this authority to the Board for a maximum period of five
years each time. A resolution of the General Meeting toissue shares, or to designate the Board to do so, canonly be adopted at a proposal of the Board.
On 25 May 2023, the General Meeting designated theBoard as a competent body to issue ordinary shares or
grant rights to subscribe for ordinary shares for a periodof 18 months. This authorisation is limited to a
maximum of 10% of the ordinary shares issued andoutstanding for general purposes with the possibility torestrict or exclude pre-emptive rights. The General
Meeting also authorised the Board, with effect as of 25
May 2023, to issue ordinary shares in connection with arights issue only, for a maximum of 40% of the issued
share capital on 25 May 2023 and for a maximum termof 18 months, provided that the pre-emptive rights are
fully observed in line with market practice.

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In addition, on 31 May 2020, the General Meeting
authorised the Board, for a period until 2 June 2025, to
specifically issue ordinary shares and to grant rights to
subscribe for shares for the purpose of the company's
Long-Term Incentive Plan and certain other company
share incentive plans. This authorisation is limited to 2%of the ordinary shares issued and outstanding on the
IPO settlement date. Subsequently, on 13 September
2021, the Board further sub-delegated this authority to
the Chair of the Board, the Chair of the Audit
Committee and the Lead Independent Director, on
behalf of the whole Board and within the limits ofdesignation by the General Meeting set out above, andonly in respect of the company's share incentive plans.

preference shares do not have a pre-emptive right inrespect of ordinary shares.

The General Meeting also authorised the Board, for aperiod until 2 June 2025, to grant the preference sharesto the Protective Foundation as described in more detailin the Anti-takeover measures section in this report.

On 25 May 2023, the General Meeting delegated to theBoard the authority to restrict or exclude the preemptive rights of shareholders in relation to a maximumof 10% of the ordinary shares issued and outstanding
as of 25 May 2023 for general purposes as described in
more detail in the Issuance of shares section in thisreport. This authority of the Board expires after a periodof 18 months.

PRE-EMPTIVE RIGHTS
Upon the issuance of ordinary shares, holders of thecompany’s ordinary shares have pre-emptive rights to
subscribe for ordinary shares in proportion to a total
amount of the ordinary shares they hold. An exception
to these pre-emptive rights is the issuance of sharesagainst a contribution in kind. Furthermore, under Dutch
law, this pre-emptive right does not apply to theordinary shares issued to the employees of thecompany or a group company thereof. No pre-emptive
rights exist for holders of ordinary shares upon theissuance of preference shares. Similarly, holders of

The General Meeting may resolve to restrict or exclude
the pre-emptive rights pursuant to a resolution of theBoard. In the event of the issuance of shares pursuant
to a resolution of the Board, the General Meeting may
designate the Board as a competent body to do so,
subject to the due observance of the company’s
Articles of Association. Such resolution of the General
Meeting can only be adopted at the proposal of theBoard and requires a majority of at least two-thirds ofthe votes validly cast if less than 50% of the issued
share capital is represented at the General Meeting.

PURCHASE OF OWN SHARES
Subject to the relevant provisions of Dutch law and thecompany’s Articles of Association, the company may
acquire its own fully paid-up shares, or depository
receipts for shares for consideration, if: (i) thecompany's equity, less the payment required to makethe purchase, does not fall below the sum of called-up
and paid-up share capital and any statutory reserves asappearing from the last adopted annual accounts;

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance(ii) the aggregate nominal value of the shares which thecompany and its subsidiaries hold does not exceed
50% of the issued share capital; and (iii) the General
Meeting has authorised the Board to acquire thecompany's own shares, the authorisation of which isvalid for a maximum period of 18 months.
On 25 May 2023, the General Meeting authorised theBoard for a period of 18 months to acquire thecompany’s own ordinary shares, up to a maximum of
10% of the aggregate number of ordinary shares issued
as of 25 May 2023, provided that the company will holdno more ordinary shares in stock than 50% of its issued
share capital, either through purchase on a stock
exchange or otherwise, at a price, excluding expenses,
not lower than the nominal value of the ordinary sharesand not higher than the opening market price of theordinary shares on Euronext Amsterdam on the day of
the repurchase plus 10%.
The company may, without authorisation by the General
Meeting, acquire its own shares for no consideration or
for the purpose of transferring the shares to employeesof the company or a group company thereof undershare incentive plans, provided such shares are quoted
on the price list of a stock exchange.

Introduction

Strategy andvalue creation

Performance review
and outlook

On 25 May 2023, the General Meeting approved thecancellation of 15,300,000 ordinary shares in treasury.
At 31 December 2023, the company held 1,403,020
treasury shares.
No voting rights may be exercised with respect to any
share held by the company or its subsidiaries, or any
share for which the company or its subsidiaries holds
the depositary receipts. No distributions or otherpayments will be made on shares which the company
holds in its own share capital.

CHANGE OF CONTROLThe company is not a party to any significant
agreements which will take effect, be altered or
terminated upon a change of control of the company asa result of a public offer. However, the company’s
financing agreements and issued notes contain clauses
that, as is customary for such transactions, entitle thelenders and noteholders, respectively, to claim early
repayment of the amounts borrowed by the company or
termination in certain events related to change ofcontrol. Furthermore, the company and/or one or moreof its subsidiaries have, in the ordinary course ofbusiness, entered into various joint ventures, licensing
and other agreements, which contain change of control
provisions. These agreements taken individually are notin themselves considered significant agreements within
the meaning of the Decree on Article 10 of the EU
Takeover Directive.

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168

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

COMPLIANCE WITH THE DUTCH CORPORATE
GOVERNANCE CODE
Whilst the company endorses the Dutch Corporate
Governance Code (the Code), it also believes that
corporate governance needs to be tailored to thecompany’s specific situation, and therefore nonimplementation of individual best practice provisions of
the Code may be justified in specific situations. The
Code is based on the “comply-or-explain” principle,
which means that the company may decide whether itwill adhere to certain sections of the Code, but if it
decides not to, it must explain why.
Outlined below are the best practice principles of theCode that the company did not comply with at
31 December 2023, which is largely explained by thecompany's shareholder structure or because suchnon-compliance is inherent to the IPO. However, thecompany is committed to making further progress oncompliance with the Code, in particular as thecompany’s free float increases.

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

169

Best practice principles of the CodeReasons for the deviation

Best practice provision 2.1.7 (ii): the company is notcompliant with best practice provision 2.1.7(ii) that
requires that more than half of the non-executive
Directors be independent within the meaning of the Dutch
Corporate Governance CodeSince JAB and Mondelez are two major shareholders of the company, 7 out of the 13 non-executive Directors are representatives of these shareholders.
Olivier Goudet, Peter Harf, Joachim Creus, Frank Engelen and Patricia Capel are representatives of JAB, and Laura Stein and Jeroen Katgert are
representatives of Mondelez. To ensure good corporate governance and independence of the Board, the company has a Lead Independent Director. The
primary role of the Lead Independent Director is to serve as a liaison between the independent non-executive Directors and the Chair and the company's
CEO. More details about the responsibilities of the Lead Independent Director can be found in the Report of the non-executive Directors section.

Best practice provision 2.1.7 (iii): the company is notcompliant with best practice provision 2.1.7(iii) that
requires that there be no more than one non-executive
Director who can be considered to be affiliated with ashareholder, or group of affiliated shareholders, holding
more than 10% of the shares in a company.

Through JAB, the company has a proven, long-term oriented shareholder with strategic vision. JAB's strategic vision is reflected in the company
through its representatives on the Board which, the company believes, benefits both the company and its stakeholders. Similarly, the company believes
that it and its stakeholders benefit from having MIHN’s representatives on the Board. The company considers that the experience of the Directors in the
global food and beverage industry (including within the broad portfolio of JAB consumer goods companies) is a competitive advantage which
outweighs any perceived disadvantage of non-independence. Furthermore, as explained above, the company has a Lead Independent Director topreserve independence of the Board. More details about the responsibilities of the Lead Independent Director can be found in the Report of the nonexecutive Directors section.

Best practice provision 5.1.3 and 2.1.9: independence of
the Chair of the Board: Olivier Goudet is the Chair of theBoard. Mr. Goudet is not "independent" within themeaning of best practice provision 2.1.8 of Dutch
Corporate Governance Code.

The company believes that Mr. Goudet's experience in the global food and beverage industry (including within the broad portfolio of JAB consumer
goods companies) benefits the company and its stakeholders, and this benefit outweighs any perceived disadvantage of non-independence. In
addition, in accordance with the company’s Articles of Association and the Board Rules, as the Chair of the Board is not independent, the company has
appointed a Lead Independent Director to ensure there is an independent counter-voice. More details about the responsibilities of the Lead
Independent Director can be found in the Report of the non-executive Directors section.

Best practice provision 2.2.2: appointment periods ofFollowing the company’s IPO in 2020, the company has opted for phased board appointments in order to avoid the risk of all non-executive
non-executive Directors: the initial appointment periods
Directors resigning at the same time. More details can be found in the Term of appointment section. However, the initial term of all the newof the non-executive Directors are: (i) six years for Olivier appointments of non-executive Directors in 2023 is in compliance with the relevant provisions of the Code.
Goudet, Peter Harf and Luc Vandevelde ; (ii) five years for
Joachim Creus. The company is not compliant with bestpractice provision 2.2.2 that requires that a non-executive
Director be appointed for an initial period of four years.
Best practice provision 3.3.2: the company is notcompliant with best practice provision 3.3.2 that requiresthat non-executive Directors not be awarded
remuneration in the form of shares and/or rights toshares.

In accordance with the company's Directors’ Remuneration Policy, the non-executive Directors have received part of their fee in the form ofgrants in restricted share units (the RSUs) under the company's long-term incentive plan as set out in the company's Remuneration Report.
Vesting of these RSUs is not subject to any performance conditions. Given the company’s geographical footprint, the company believes thatpaying part of the non-executive Director fee in shares promotes its interests and that of its shareholders by strengthening the company's
ability to attract and retain highly competent non-executive Directors internationally, thereby supporting diversity.

Best practice provisions 3.1.2 (v) and (vi): the company is notcompliant (in relation to the LTI) with best practice provision
3.1.2 (v) that requires that the variable remuneration
component is linked to measurable performance criteria
determined in advance and with best practice provision (vi)that requires that shares awarded to directors should be held
for at least five years after they are awarded.

As disclosed in the company’s Remuneration Report, the executive Director has received a grant in restricted share units (the RSUs) under thecompany's long-term incentive plan which vest in three years after the RSU grant, in line with market practice, subject to continuous
employment. The value of the RSUs is directly linked to the future market value of JDE Peet’s and therefore the company considers that thelong-term incentive appropriately links the executive Director’s remuneration with long-term value creation. Furthermore, the company sees noreason to require the executive Director to hold the shares for five years, since the executive Director has made a personal investment in the
Executive Ownership Plan to foster a long-term commitment as explained in the Remuneration Report, and therefore already has a strong
incentive to pursue the long-term interests of the company.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

CORPORATE GOVERNANCE STATEMENT
The company is required to make a statement
concerning corporate governance as referred toin article 2a of the decree on the content of the
management report (the Decree). The
information required to be included in thisCorporate Governance Statement as describedin articles 3, 3a and 3b of the Decree, which areincorporated and repeated here by reference,
can be found in the following sections or pagesof this report:• The information concerning compliance with
the Dutch Corporate Governance Code, as
required by article 3 of the Decree, can befound in the Compliance with the Dutch
Corporate Governance Code section• The information concerning the company’srisk management and control frameworks
relating to the financial reporting process, as
required by article 3a sub a of the Decree,
can be found in the Risk management
section• The information regarding the functioning of
the company’s General Meeting of
Shareholders and the authority and rights ofthe company's shareholders, as required byarticle 3a sub b of the Decree, can be foundin the General Meeting section

•

•

•

The information regarding the composition
and functioning of the company’s Board andits committees, as required by article 3a subc of the Decree, can be found in the
Corporate Governance section as well as in
the section Report of the non-executive
Directors
The information concerning the company’s
Diversity, Equity and Inclusion Policy, as
required by article 3a sub d of the Decree,
can be found in the Diversity subsection in
the Corporate Governance section and theConnecting People section.
The information concerning the inclusion of
the information required by the Decree Article
10 EU Takeover Directive, as required byarticle 3b of the Decree, can be found in therelevant sections in Shares and Shareholders
and Investor Relations.

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170

BRAND HIGHLIGHT

FOR LOVERS OF COFFEE#1

Instants brandin Australia &New Zealand

4.3 M
Moccona cups
consumed dailyin Australia

Since 1960, Moccona has been
known as the coffee of choicefor coffee lovers. Our consistentpassion for quality & emotional
storytelling has enabled Moccona
to be the most-loved coffee brandin Australia & New Zealand.
With the purpose of reigniting thethrill of romance and sparking
momentsof unmistakable delight, we invite
consumers to indulge in their love ofcoffee and life. With rich heritage andcraftsmanship, we continue to deliver
premium quality in every cup, and will
expand into even more occasions in
the future.

During the year, we continued our
expansion into Greater China,
Singapore, Thailand and Malaysia with
our instant, pure, freeze-dried andspeciality mixes range.
In 2023, the Moccona Cadbury
Mocha Speciality Mixes range wasvoted Australian coffee ‘product of
the year’™ via a consumer surveyof product innovation. We launched
our latest innovation in our Cadbury
partnership, with our velvety smooth
Vanilla Mocha blend, delighting bothcoffee and chocolate lovers
everywhere.
Moccona. For lovers of coffee

Back to brands overview èJDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

BOARD’S ROLE, FUNCTIONING AND
DUTIESAs a one-tier board, the Board is the executive andsupervisory body of the company, and is therefore
entrusted with the company's management. At thesame time, its non-executive Directors supervise theexecutive Director. In doing so, the non-executive
Directors focus on the effectiveness of the company’s
internal risk management and control systems,
including the internal audit function. This extends to theintegrity and quality of the financial and non-financial
reporting and the company’s long-term business plans,
including the implementation of such plans and theassociated risks, the company’s information technology
and cybersecurity risks, corporate social responsibility
and compliance with laws and regulations.
The Board's responsibilities include, among otherthings, setting the company's management agenda andstrategy, developing a view on the company's
sustainable long-term value creation, enhancing thecompany's performance, and identifying, analysing andmanaging the risks associated with the company's
strategy and activities including environmental, socialand governance issues (ESG), which includes climaterelated risks and opportunities.
The Board is accountable for these matters to theGeneral Meeting. It may perform all acts necessary or
useful for achieving the company's corporate purposes,
except those expressly attributed to the General

Introduction

Strategy andvalue creation

Performance review
and outlook

Meeting as a matter of Dutch law or pursuant to thecompany's Articles of Association.
The Board meets at least four times a year. Additional
meetings may be convened when deemed appropriateby the Chairman or if requested by at least three
Directors.
More information about the responsibilities andfunctioning of the Board can be found in the Board
Rules.

COMPOSITION OF THE BOARD
Pursuant to the company’s Articles of Association, theBoard comprises of one or more executive Directors
and one or more non-executive Directors. The nonexecutive Directors determine the total number of
Directors including the number of executive Directors
on the one hand and non-executive Directors on theother hand. The Board is presided over by the
Chairman, a title that is only granted to a non-executive
Director.
At 31 December 2023, the Board comprised of one
executive Director and 13 non-executive Directors, aspresented in the Our Board of Directors section in thisreport.

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APPOINTMENT, SUSPENSION AND REMOVAL OF
DIRECTORSThe General Meeting of Shareholders (the General
Meeting) appoints the Directors upon the proposal of
the Board. A resolution of the General Meeting toappoint a Director, other than pursuant to a proposal by
the Board, requires a simple majority of the votes cast,representing at least one-third of the issued sharecapital.
Pursuant to the Investor Rights Agreement, MIHN isentitled to nominate a specific number of non-executive
Directors for appointment. More information about
MIHN’s rights to nominate Directors can be found in
Investor Rights Agreement in this chapter.
The General Meeting may suspend or remove a Director
at any time. In addition, an executive Director may besuspended by the Board at any time. A suspension canbe ended by the General Meeting. A suspension may be
extended one or more times but may not last longer
than three months in total. If, at the end of that period,no decision has been taken on termination of thesuspension or on removal, the suspension shall end. A
resolution of the General Meeting to suspend or dismissa Director, other than on the proposal of the Board,requires a simple majority of the votes cast,representing at least one-third of the issued sharecapital.

TERM OF APPOINTMENT
Executive Directors are appointed for a maximum
period of four years per appointment. On 18 November
2020, Fabien Simon was appointed as executive
Director for an initial period of four years, ending at theAnnual General Meeting of Shareholders to be held in
2025.
Non-executive Directors are in principle also appointed
for a period of four years. After the initial period, nonexecutive Directors may then be reappointed once for aperiod of four years. A non-executive Director may thenbe subsequently reappointed again for a period of two
years, which appointment may be extended by a termof not more than two years. Following the company’s
IPO in 2020, the company has, however, phased out theinitial appointment terms of non-executive Directors inorder to avoid the risk of all non-executive Directors
resigning at the same time, thereby ensuring thatknowledge and experience is handed over gradually.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Director re-appointment schedule55
Initialappointment date

End ofcurrentterm

18 November 2020

2025

Olivier Goudet

2 June 2020

2026

Peter Harf

2 June 2020

2026

Luc Vandevelde

2 June 2020

2026

Joachim Creus

2 June 2020

2025

Aileen Richards

2 June 2020

2024

Denis Hennequin

2 June 2020

2024

Stuart MacFarlane

2 June 2020

2024

Name
Executive Director
Fabien Simon
Non-executive Directors

Frank Engelen

18 November 2020

2025

Laura Stein

11 May 2022

2026

Ana García Fau

11 May 2022

2026

Paula Lindenberg

11 May 2022

2026

Patricia Capel

25 May 2023

2027

Jeroen Katgert

25 May 2023

2027

BOARD COMMITTEESThe Board may appoint standing and/or ad hoc
committees from among its members. These
committees are charged with tasks specified by the
Board. At 31 December 2023, the Board had two
committees of non-executive Directors to assist theBoard in fulfilling its duties. These are the Audit
Committee and the Remuneration, Selection andAppointment Committee. Pursuant to the Investor
Rights Agreement, each Board Committee comprises atleast three members and, to the extent allowed under55

Introduction

Strategy andvalue creation

Performance review
and outlook

applicable laws and regulations, MIHN is represented
by one of its designees in all committees. In addition,
the Board appointed the Sustainability Board Contacts
to stay alert to current and emerging ESG trends andany potential risks related to sustainability and related
issues to provide strategic guidance and advice to thecompany. However, the Sustainability Board Contacts
do not form a committee as recognised under the Dutch
Corporate Governance Code.

AUDIT COMMITTEE
The roles and responsibilities of the Audit Committee
are set out in the Audit Committee’s terms of reference,
which are available on the company’s website.
According to the Audit Committee's terms of reference,
its tasks include (among other things):• The monitoring of the financial accounting and nonfinancial reporting process, the efficiency of theinternal management system, the internal audit andrisk management system• The monitoring of the statutory audit of the annual
accounts, and in particular the process of such audit• The review and monitoring of the independence ofthe external auditor• The nomination for appointment of the external
auditor by the General Meeting• The monitoring of financing and tax policy of thecompany.
The Audit Committee meets as often as required for aproper functioning of the Audit Committee, but at least

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four times a year. Additional meetings may be held
whenever deemed necessary by the Chair of theCommittee or by two other members of the Committee.

Remuneration Policy. The report is adopted by the
Board and submitted to the company’s General
Meeting.

REMUNERATION, SELECTION AND APPOINTMENTCOMMITTEEThe Remuneration, Selection and Appointment
Committee meets as often as required for its proper
functioning, but at least twice a year. Additional
meetings may be held whenever deemed necessary by
the Chair of the Committee or by two other members of
the Committee.

The Remuneration, Selection and Appointment
Committee is a combination of both the remunerationcommittee and the selection and appointmentcommittee. It discharges all roles and responsibilities ofboth a typical remuneration committee and a selection
and appointment committee as provided by the Dutch
Corporate Governance Code. Its roles andresponsibilities are further detailed in the Remuneration,
Selection and Appointment Committee's terms ofreference, which are available on the company’s
website and include:• The preparation of proposals to the Board on the
Remuneration Policy to be adopted by the General
Meeting• The proposals on the remuneration of executive
Directors to be determined by the Board• The preparation of the selection criteria andappointment procedures for Directors, and thecomposition of the profile of the Board• The proposal for Directors' appointments andreappointments.
The Remuneration, Selection and Appointment
Committee also prepares annually a Remuneration
Report on the implementation of the company’s

The Board will propose to the shareholders to appoint Aileen Richards, Stuart MacFarlane and Denis Hennequin as a non-executive Directors for a second term of four years at the upcoming AGM in 2024.

SUSTAINABILITY GOVERNANCE
The Board regularly, but at least two times per year:• Oversees the implementation of the sustainability
agenda and policies including climate change• Reviews the progress on ESG-related matters,
including climate-related issues as well as
responsible sourcing, packaging, water, waste,
health and safety, and diversity, equity and inclusion• Monitors the progress of our Common Grounds
Sustainability programme, goals and targets.
To place even greater focus on ESG, the Board has
appointed two Sustainability Board Contacts. These
appointees provide an oversight of ESG-related mattersand advise the Executive Committee and company's
senior management. Their detailed roles andresponsibilities can be found in the Sustainability Board
Contact's terms of reference, which are available on thecompany's website.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Responsibility for the company's Common Grounds
sustainability agenda and programme lies with the CEO
and the individual members of the Executive Committee
responsible for specific business areas. Specifically,each member of the Executive Committee owns
respective ESG targets that build our Common Grounds
programme and are accountable for achieving thesetargets.
Led by the Vice President Sustainability, theSustainability team subsequently works with a crossfunctional leadership group composed of subjectmatter experts from across the company, including
areas such as procurement, manufacturing, researchand development, marketing, human resources, andcompliance to execute and measure the company’ssustainability and climate change programmes.
Throughout the year, the company held Quarterly
Programme Review sessions, during which ESG
subject-matter experts reported on the performance of
KPIs related to the Common Grounds programme andits key pillars to the Vice President Sustainability. The
company's CEO takes part in these sessions at least
once a year.
More information on the Common Grounds programme
can be found in the Common Grounds section earlier inthis report and on our website in the Sustainability
section.

Introduction

Strategy andvalue creation

Performance review
and outlook

CONFLICTS OF INTEREST
The company’s Articles of Association and Board Rules
prescribe how to deal with (potential) conflicts ofinterest between the company and a Director. A
Director having a conflict of interest or an interest which
may have the appearance of a conflict of interest must
declare the nature and extent of the interest to the other
Directors. Subsequently, the Director shall notparticipate in discussions or decision-making on a
subject or transaction in relation to which the Director
has a direct or indirect personal interest that conflicts
with the interests of the company.
Decisions to enter into transactions in which there areconflicts of interest with Directors that are of material
significance to the company and/or to the relevant
Directors, require a Board resolution taken with theconsent of the majority of the non-executive Directors(excluding any non-executive Director with a conflict ofinterest). Any such decisions shall be reported in theannual report for the relevant year, including a reference
to the conflict of interest and a declaration that therelevant best practice principles of the Dutch Corporate
Governance Code have been complied with. Eachfinancial year, the company requests the Directors tocomplete an extensive questionnaire which includes thedisclosure of (potential) conflicts of interest. No conflictsof interest were reported in 2023. Reference is made tonote 7.2 Related Parties of the Consolidated Financial
Statements.

Governance andrisk management

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information

174

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

EXECUTIVE COMMITTEEROLES AND DUTIESThe company is managed by the Chief Executive Officer(CEO) who is supported by the Executive Committee,
consisting of senior managers of the company. In
addition to the CEO, at 31 December 2023, theExecutive Committee consisted of 10 other members,
namely: the company’s CFO, the four segment
Presidents, the Chief Marketing Officer, the Chief
Research & Development Officer, the Chief Human
Resources Officer, the Chief Supply Officer and theChief Legal and Corporate Affairs Officer (who also acts
as the Company Secretary).
The CEO is entrusted with the (day-to-day)management of the company. The Executive
Committee assists the CEO in the fulfilment of his duties
and is put in place to enable faster strategic alignmentand operational execution by increasing the company's
focus on the development of its business, innovation,
ESG and people. Accordingly, the responsibilities of the
Executive Committee involve supporting the CEO on
various matters, including the implementation of thecompany's general strategies and risks, its businessagenda as well as its operational and financial
objectives. The Rules of Procedure of Senior
Management are available on the company’s website
and describe in detail the tasks, composition and otherrelevant procedures of the Executive Committee.

Introduction

Strategy andvalue creation

Performance review
and outlook

The CEO allocates the tasks of the Executive
Committee among its members, after consultation with
the Board. The Executive Committee reports to theCEO. The CEO is the first contact within the Executive
Committee for the Chair of the Board and the Board,
therefore any communication between the Executive
Committee and non-executive Directors occurs firstthrough the CEO. For financial topics, the company's
CFO may interact directly with the Chair and othermembers of the Audit Committee. The company's Chief
Human Resources Officer may also interact with the
Chair and other members of the Remuneration,
Selection and Appointment Committee. Members of the
Executive Committee are, from time to time, invited toattend meetings of the Board, at the discretion of theBoard. Furthermore, the Executive Committee and theBoard also meet and interact during informal occasions.
More information on the Executive Committee can befound in Our Executive Committee earlier in this section.

DIVERSITY
As well as striving for an inclusive culture across theorganisation, the company also recognises the benefitsof having a diverse Board and Executive Committee.
In the selection of members of the Board and the
Executive Committee, the company strives for a diverse
composition and a balance between expertise,
experience, competencies, other personal qualities,
gender, age, nationality and cultural background, as
well as an appropriate combination of international

Governance andrisk management

Financialstatements

Supplementary
information

knowledge and experience encompassing financial,legal, economic, commercial, risk management,sustainability, social, marketing and technology aspects
relevant to the company's business and footprint.
In 2023, the company expanded its diversity, equity andinclusion Policy to apply throughout the company, andamended its Board profile to include additional desired
expertises for its non-executive Directors. The full textof the diversity, equity and inclusion Policy and theBoard profile are available on the company's website.
The company shall ensure that the composition of theBoard is in accordance with the company's diversity,
equity and inclusion Policy and the Board Profile. Morespecifically, the company shall, among other topics,
ensure that at least one-third of the non-executive
Directors are women and at least one-third of the nonexecutive Directors are men (in each case, rounded-up).
The Board annually assesses the size and compositionof the Board. As part of the procedures for appointing
new Directors, the Directors are invited to give their
input on identifying potential candidates. Members of
the Remuneration, Selection and Appointment
Committee propose suitable candidates forconsideration by the Board, taking into accountdiversity in background, gender, geographical andindustry experience, skills and other distinctions
between Directors. The Board is satisfied that its
current composition reflects the appropriate mix ofdiversity, experience, independence, knowledge andskills.

175

The company also attaches great value to diversity inthe composition of its Executive Committee. In
accordance with the company's diversity, equity andinclusion Policy, the company’s objective is to ensurethat at least 30% of the executive Directors on the
Board (if more than one is appointed) are women and at
least 30% are men, and that at least 30% of thepositions in the Executive Committee are held by
women and at least 30% by men. The company
believes that such a diversity ambition for the Executive
Committee is appropriate for a fast-moving consumer
goods company and generally reflects the market trend.
In 2023, the company met its gender diversity
objectives when it comes to its composition of both theBoard and Executive Committee.
For more information on our diversity and inclusion
aspirations, including for the Global Leadership team,refer to the Connecting People section of this report.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Number and percentage of women and men nonexecutive Directors in 2023

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Nationalities non-executive Directors
FrenchAmericanBritishBelgianGermanSpanishDutch
Brazilian
Total

8

Nationalities Executive Committee

Number and percentage of women and men in the
Executive Committee in 2023 (including executive
Director)

FrenchAmericanBritishBelgian
SpanishAustralian
Russian
Dutch
Total

8

Financialstatements

Supplementary
information

176

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

177

Supplementary
information

Board Profile of non-executive Directors
The purpose of this Board profile is to provide the company's stakeholders with an overview on the main aspects of diversity and competences that the company considers to be the most relevant for its stakeholders
Non-executive
Directors

Name

Diversity

Experience

Nationality

Year of birth

GenderOlivier Goudet

French1964

M

Aileen Richards

British1959

F

Stuart MacFarlane

British1967

MPeter Harf

German

1946

M

Luc vandeVelde

Belgian

1951

M

Joachim Creus

Belgian

1976

M

Denis HennequinFrench1958

M

Frank Engelen

Dutch

1971

M

Laura Stein

USA

1961

F

Ana García Fau

Spanish1968

F

Paula Lindenberg

Brazilian

1975

F

Patricia Capel

Brazilian

1972

F

Jeroen Katgert

Dutch

1968

M

Financial
experienceLegalexperience

Economic
experience

Commercial
experience

Socialexperience

Marketingexperience

Listedcompany
experience

Corporate
Governance

FMCG
experience

Organisational
experience

Sustainability

Digitisation
andtechnology

BRAND HIGHLIGHT

WHERE HERITAGE MEETS CRAFT#1

White Coffee
Mixes in Malaysia,
Singapore andHong Kong200

F&B
establishmentswith new market
openings inHong Kong andPhilippines

In an era where tradition andcraftsmanship can lose its place,
OldTown preserves the Asian foodand drink culture by making it
exciting and relevant in thepresent day.
The recent launch of OldTown’s
Salted Caramel White Coffee andSmooth Roast Less Sugar Kopi
reaffirms the brand’s growing appeal
to contemporary tastes. OldTown is
the No. 1 White Coffee brand in
Malaysia, Singapore and Hong Kong.
It is also the fastest growing brand invalue among top brands in coffee
mixes in these markets.*
Since the launch of its refreshedidentity last year, OldTown has beenrecognised with several accolades –the KANTAR Brandz Award for BestTVC in Malaysia, the FairPrice
Partners Excellence Award for Most
Popular Brand in Singapore, theLazada LazMall Local Superstar
Award in Malaysia, Malaysia
Franchise Awards, the Halal
Franchise Excellence Award andPutra Aria Brands Awards.

Back to brands overview èJDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

179

REMUNERATION REPORTREMUNERATION, SELECTION AND APPOINTMENT COMMITTEE CHAIR LETTER
Dear Reader,
On behalf of the Board and the Remuneration, Selection and Appointment Committee, I am delighted to present the2023 Remuneration Report. The Remuneration Report provides a summary of the application of the Remuneration
Policy for the executive and non-executive Directors in 2023.
The focus of the Remuneration Policy is on ensuring an appropriate alignment between the remuneration of theexecutive Director and the successful delivery of the company's long-term strategy. With this in mind, a significant
proportion of the remuneration package for the executive Director is linked to the delivery of sustainable long-termvalue creation for the company and its stakeholders and the Remuneration Policy is designed to support an ownership
mentality.

Updated Remuneration Policy Approval 2024
In line with the requirements of the Dutch Civil Code, which require that the Remuneration Policy is put to the vote atleast every four years, the Policy will be presented for a shareholder vote at the AGM to be held on 30 May 2024.
During 2023, the Committee has assessed the 2020 Directors’ Remuneration Policy and considers that overall it
remains fit for purpose and continues to support the company in attracting, retaining, engaging and motivating
Directors of the required calibre. The Committee is therefore not proposing changes to the overall philosophy of theRemuneration Policy. The Committee has, however, taken this opportunity to propose certain updates in order tofurther enhance alignment between remuneration arrangements and sustainable long-term value creation, also taking
into account relevant shareholder expectations.
You can expect to find detailed information on the proposed Remuneration Policy updates in the Convocation Noticeand Explanatory Notes of the 2024 AGM.

In this letter, I draw your attention to some of the key items in the Remuneration Report.

Looking ahead to 2024

Executive Director Remuneration in 2023

We are monitoring the developments in the market and will ensure that the Policy continues to align remuneration withthe creation of sustainable long-term value for JDE Peet’s, our shareholders and all other stakeholders.

The short-term incentive for the executive Director is strongly aligned to performance, with measures being unchanged
from previous years: Net Sales (net of commodity inflation/deflation), adjusted EBIT and average Operating Working
Capital improvement.
Based on the company's performance during the year, the total bonus outcome for 2023 for the executive Director
reflects a multiplier of 1.22x of target (61% of the maximum bonus opportunity). This reflects performance below target
for Net Sales (net of commodity inflation/deflation) and above target for both adjusted EBIT and average Operating
Working Capital improvement. You can read more about the company's 2023 financial performance in the Introduction
to the Annual Report.
As part of its periodic review of remuneration, the Committee also made adjustments to the annual base fee and shortterm incentive opportunity for the executive Director. These adjustments are intended to ensure that his remuneration
remains competitively positioned, whilst maintaining the majority of the package being variable and long-term in linewith our pay-for performance philosophy.

Next steps
I trust that you will find the Remuneration Report clear in explaining the implementation of the Remuneration Policy
during 2023. We understand the desire and need of shareholders for transparency around remuneration and havemade strides to make this Remuneration Report transparent and easier to read. I trust that we have provided theinformation you need to be able to support this Remuneration Report at the 2024 AGM.
I would like to thank shareholders for their continued support and I look forward to presenting this Remuneration
Report at the AGM.
Sincerely,

Aileen Richards
Chair of the Remuneration, Selection & Appointment Committee

JDE Peet's N.V.
Annual Report 2023

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at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

180

Supplementary
information

ABOUT THIS REPORTSUMMARY OF REMUNERATION POLICY AND IMPLEMENTATIONThe Remuneration Report explains how JDE Peet’s' Directors’ Remuneration Policy was applied during the year andcontains the details of the actual remuneration of the executive and non-executive Directors in 2023.

The Remuneration Policy for the executive Director is simple and transparent in design and consists of the following
elements:

All references in this Remuneration Report refer to the current Remuneration Policy which was applicable during 2023.
This Remuneration Policy was first adopted by the General Meeting on 25 May 2020 and amended at the Extraordinary
General Meeting on 18 November 2020, and is available on the company's website. In line with the requirements of the
Dutch Civil Code, which require that the Policy is put to the vote at least every four years, the Remuneration Policy will
be presented for a shareholder vote at the AGM to be held on 30 May 2024. The Convocation Notice and Explanatory
Notes of the AGM contain more details on the proposed provisions of the Remuneration Policy from 2024.

Policy element

Design per Remuneration Policy

Implementation in 2023

Annual base fee•

Fixed cash compensation, aligned with the scope and natureof the role, the executive Director's experience and relevantmarket benchmark data•

EUR 1.25 million

Short-term incentive•

Performance-related short-term incentive paid in cash
subject to the achievement of annual targets••

Target of 130% of base fee
Maximum capped at 200% of thetargetLong-term incentive•

Awards of Restricted Share Units (RSUs) which are settled inshares on vesting
Vesting three years from award dateForms a substantial part of the total remuneration
Grant capped at 500% of base fee•

Grant of 400% of base fee

Defined contribution plan and allowance in respect of salary
above the pensionable cap
Other benefits include health, disability and life insurance,and mobility (car) allowance•

In line with typical market practiceThis Remuneration Report is prepared in accordance with article 2:135b of the Dutch Civil Code and the Dutch
Corporate Governance Code, and is subject to an advisory vote at the AGM.

THE REMUNERATION POLICY FOR THE EXECUTIVE DIRECTOR
The objective of the Remuneration Policy is to attract, engage, incentivise and retain highly skilled and qualified
executive Directors in order to achieve the company's strategic and operational objectives. It is designed to:• Be simple, effective and transparent• Support an ownership mentality and entrepreneurship• Align the remuneration of the executive Director with the successful delivery of JDE Peet’s’ long-term strategy andsustainable long-term value creation
When designing the Remuneration Policy, the Board considered multiple perspectives including business requirements,
JDE Peet’s’ identity, vision and values, the overall pay philosophy across the company, shareholder views, the payratio between the executive Director's pay and the average employee pay, and societal context.
In formulating the Remuneration Policy and determining the remuneration of the executive Director, the Board also took
into consideration scenario analyses of the possible outcomes of variable remuneration components.
The remuneration offered under the Remuneration Policy is reviewed periodically against relevant market benchmark
data, considering compensation levels and trends in the market as well as international remuneration standards.

•••
Retirement and otherbenefits••

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

The Board has intentionally designed a Remuneration Policy which links the majority of the executive Director's pay tothe company's performance and the delivery of sustainable long-term value creation. As illustrated in the chart below,
more than 80% of the executive Director's remuneration is variable, the majority of which is long-term.
Executive Director fixed vs variable remuneration at target

Governance andrisk management

Financialstatements

Supplementary
information

181

ANNUAL BASE FEE
The annual base fee, including holiday allowance and other local statutory requirements, provides the main fixed
element of the executive Director's remuneration package. The annual base fee is set at a level to attract, engage andretain the calibre of executive Director required to devise and execute JDE Peet’s’ strategy. The annual base fee of theexecutive Director in 2023 was EUR 1.25 million.

SHORT-TERM INCENTIVE
The executive Director participated in the short-term incentive plan. The target short-term incentive for 2023 was 130%of the annual base fee, whereby the maximum payout opportunity continues to be capped at 200% of the target. The
short-term incentive is paid out in cash.

EXECUTIVE DIRECTOR REMUNERATION IN 2023
The remuneration of the executive Director is determined by the Board, following a recommendation from theRemuneration, Selection and Appointment Committee in accordance with the Remuneration Policy.
In 2023, the executive Director was Fabien Simon, appointed as Chief Executive Officer on 7 September 2020.
The Board considers that the company's ability to attract, engage, incentivise and retain a highly-skilled and qualified
executive Director is a prerequisite in achieving the company's strategic and operational objectives. Therefore, and as
part of its periodic review of remuneration, the Committee made adjustments to the annual base fee and short-term
incentive opportunity of the executive Director as shown in this remuneration report. In making these adjustments, theCommittee considered external market benchmark data, the performance of the executive Director and the company(including progress made on the company's sustainability strategy), the scope of responsibilities of the executive
Director, as well as external and internal salary movements. These changes result in the executive Director's total
package being competitively positioned, whilst maintaining the majority of his package being variable and long-term inline with the company's pay-for performance philosophy.

On an annual basis, the Committee selects indicators for the short-term incentive that are derived from, or linked to, thebusiness plan, reflecting the company’s long-term strategy. The short-term incentive payout for the executive Director
for 2023 was dependent on the performance against the following pre-determined measures, which remained
unchanged from previous years:• Net Sales, net of commodity inflation/deflation• Adjusted Earnings Before Interest & Tax (EBIT), at constant currency• Average Operating Working Capital (OWC) improvement
The short-term incentive payout is based on a multiplicative formula, whereby for each individual measure a multiplier iscalculated by the extent to which performance is achieved. The individual multipliers are then multiplied together which
results in the total bonus multiplier.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

The total bonus multiplier can range from zero for below threshold performance to 200% of target in case of
exceptional performance. The effect of the multiplicative formula is such that underperformance in one of theperformance metrics will reduce the overall bonus payout even in the case of outperformance of the others. For
example, if we meet the maximum Net Sales and OWC targets but fail to meet the minimum threshold target foradjusted EBIT, the overall bonus for the executive Director would reduce to zero. This is more stringent than the typicalmarket approach to bonus where each performance measure is assessed separately, which could result in payout forone measure even in the event of underperformance of other measures.

Governance andrisk management

Financialstatements

Supplementary
information

182

Financial year 2023

The total bonus multiplier is then applied to the target bonus opportunity to calculate the overall bonus outcome.

Total multiplier: 1.22x of target, calculated as follows: 0.86 x 1.28 x 1.11.
The realised performance resulted in a pay-out of EUR 1,982,500 for the executive Director.

LONG-TERM INCENTIVE

The Remuneration, Selection and Appointment Committee has the right to adjust the formulaic total bonus outcome forone of the following reasons:• Quality delivery (for example quality market share, brand performance and investing for the future)• Environmental, Social and Governance performance• Any extraordinary circumstances

The executive Director participates in JDE Peet’s’ Long-Term Incentive (LTI) Plan in accordance with the Remuneration
Policy. The maximum annual grant is set as a percentage of the annual base fee. For 2023, the Board decided to grantto the executive Director Restricted Share Units (RSUs) with a value equal to 400% of his annual base fee, lower thanthe maximum award value of 500% permitted under the Policy. The LTI grant is aimed at encouraging ownership,
incentivising sustainable long-term value creation and further aligning the long-term interests of the executive Director
with those of shareholders.
An overview of the number and vesting dates of the RSUs granted to the executive Director in 2023 and previous
periods is included in the Total Remuneration section.

The Committee has not exercised its discretion to make any adjustments to the formulaic bonus outcome in 2023.
The Committee reviewed the actual performance of the company during 2023 against the performance targets todetermine the extent to which the targets have been achieved. This resulted in the bonus outcome stated in this report.
The table below shows the bonus achievement against each performance measure. The actual performance targets forthe short-term incentive plans are not disclosed since this information is considered to be commercially sensitive.

The RSUs granted to the executive Director in 2023 will vest on the third anniversary of the award, subject tocontinuous employment.
Additionally, to foster an entrepreneurial culture and further align his interests with those of shareholders, the executive
Director participates in the Executive Ownership Plan (EOP).

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Under the terms of the EOP, the executive Director is given the opportunity to invest in the company with investments
matched on a 1-for-1 basis from the company, within the limits specified in the Remuneration Policy.
The Board is proud of the company's entrepreneurial culture and market-leading personal investment of the executive
Director, which incentivises sustainable long-term value creation and aligns his long-term interests with those of
stakeholders.

RETIREMENT AND OTHER BENEFITS
In line with the Remuneration Policy, the executive Director is eligible for retirement and other benefits.
As per the date of appointment, the executive Director participates in JDE Peet’s’ Dutch defined contribution plan.
Annual contributions were made up to the maximum pensionable amount of EUR 128,810 in 2023 (2022: EUR 114,866)
and were paid gross into the defined contribution plan. The executive Director received a cash allowance in respect ofsalary above the pensionable cap (with a maximum salary cap of EUR 500,000).
In addition to retirement benefits, the executive Director is entitled to a monthly mobility (car) allowance and otherbenefits in kind such as a health, disability and life insurance, and reimbursement for reasonable costs and expenses.
JDE Peet’s previously provided a loan of EUR 2.4 million to the executive Director in 2020. The annual interest rate wasset, in accordance with applicable market rates, at 3%. The loan was used to finance part of the executive Director's
participation under the EOP and was set in accordance with the Remuneration Policy. No repayments of the loan weremade in 2023. JDE Peet’s did not provide any other loans or guarantees to the executive Director.

SERVICE AGREEMENTS AND SEVERANCE PAYMENTS
The term of appointment for any new executive Directors is four years, subject to re-appointment by the AGM. The
service agreement may be terminated by the executive Director or by the company. The notice period for the company
is four months and for the executive Director two months.
If the company gives notice of termination of the employment agreement of the executive Director for a reason which is
not an urgent reason (‘dringende reden’) within the meaning of the law, or decides not to extend the service agreement
upon its expiry, or if the AGM does not re-appoint him for a subsequent term, the notice period and severance payment(combined) will be limited to one year’s base fee in total.

Governance andrisk management

Financialstatements

Supplementary
information

183

MALUS AND CLAWBACKIn 2023, no application of the use to reclaim variable remuneration by means of either a clawback or malus within themeaning of article 2:135 (8) of the Dutch Civil Code was applied on any kind of variable payments to the executive
Director. The clawback clause refers to variable remuneration to be cancelled or reclaimed in case of the executive
Director engaging in any activity contrary or harmful to the interests of the company.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

184

Supplementary
information

TOTAL REMUNERATION FOR THE EXECUTIVE DIRECTOR IN 2023
Total gross remuneration of the executive Director in 2023 and 2022 is presented in the table below (all in EUR):
Executive Director

Year

Fixed remuneration
Annual base fee

Fabien Simon

Variable remuneration
Short-term incentive

Long-term incentive57

Benefits
Retirement benefits

Total remuneration

Other benefits

Proportion fixed - variable
remuneration56

2022

1,125,000

933,750

1,572,584

97,315231,204

3,959,853

37%-63%2023

1,250,000

1,982,500

2,844,032

96,349233,8446,406,725

25%-75%

Units granted in 2023

Outstanding at 31
December 2023

Vesting date

Dividend 2023

Market value at 31
December 202358

EUR 472,556

16,444,949

The table below provides an overview of the long-term incentive grants and EOP at market value at 31 December 2023:
Executive Director
Fabien Simon

56

Grant year

Type

Share price at grant date

2020

LTI

EUR 35.70

84,03423 September 2025

2020

EOP

EUR 34.07

675,080

7 September 2025

2021

LTI

EUR 27.38

109,570

23 September 2026

2,669,125

2021

LTI

EUR 25.90

77,22115 December 2024

1,881,104

2022

LTI

EUR 26.03

38,42519 January 2025

936,0332022

LTI

EUR 29.96

100,134

23 September 2025

2,439,264

2022

LTI

EUR 27.72

36,07615 December 2025

2022

EOP 59EUR 27.72

72,20215 December 2025

2023

LTI

EUR 25.70

194,553

23 September 2026

194,553

2,047,068

878,811
EUR 50,541.40

Proportion fixed – variable remuneration reflects the comparison between fixed (annual base fee, retirement and other benefits) and variable remuneration (short- and long-term incentive).
The LTI value reflects the accounting costs in accordance with IFRS. The value of unvested LTI grants is determined on the grant date and apportioned over the vesting period. The accounting cost for 2023 reflects the 2023 allocation of the LTI grants made in the period 2020-2023.
58
JDE Peet's share price at 31 December 2023 was EUR 24,36.
59
The 2022 EOP investment has a three-year vesting period with an additional two-year holding period.
57

1,758,841
4,739,311

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

185

Supplementary
information

REMUNERATION AND COMPANY PERFORMANCE DEVELOPMENT
The overview below provides insight into the development of the executive Director's remuneration, company performance and employee pay60.
2023

2022

2021

2020

EUR 6,406,725

EUR 3,959,853

EUR 3,461,409

EUR 801,365(EUR 2,520,361 on
an annualised basis)61

EUR 8,191 million

EUR 8,151 million

EUR 7,001 million

EUR 6,651 million

3.9 %

11.3 %

6.1 %n/a

EUR 1,128 million

EUR 1,227 million

EUR 1,304 million

EUR 1,278 million

1.1 %(9.3)%

1.5 %n/a

EUR 62,781

EUR 61,914

EUR 57,705

EUR 53,832

Executive Director Remuneration
Executive Director - Fabien Simon

Company Performance
Sales
Organic Sales growth versus prior year
Adjusted EBIT
Organic Adjusted EBIT growth versus prior year
Average annual remuneration of employees
Average annual remuneration on FTE basis

The pay ratio for 2023 was 102.0 (2022: 64.0)62.

60

As JDE Peet’s N.V. listed in May 2020, the company discloses the executive Director's remuneration related to years 2020-2023 rather than the five years required by the Dutch Civil Code.
As the executive Director was appointed in November 2020, both the actual and annualised remuneration for 2020 has been included.
62
For the pay ratio, the executive Director's pay reflects the actual total 2023 remuneration as shown earlier in this report. The average employee pay is calculated as the total 2023 remuneration of all JDE Peet’s employees on an IFRS basis divided by the average number of JDE Peet’s employees on an FTE basis.
More information on the average number of FTEs can be found in note 2.3 of the Consolidated Financial Statements.
61

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Strategy andvalue creation

Introduction

Performance review
and outlook

THE REMUNERATION POLICY FOR NON-EXECUTIVE DIRECTORSThe fee structure for the non-executive Directors has been designed to ensure that the company attracts, retains andappropriately compensates a diverse and internationally experienced set of non-executive Directors.
The remuneration of the non-executive Directors is determined by the Board, in accordance with the Articles of
Association, following a recommendation from the Remuneration, Selection and Appointment Committee with due
observance of the Remuneration Policy. In line with the Dutch Corporate Governance Code, the remuneration of the
non-executive Directors is not linked to company or individual performance.

Governance andrisk management

Financialstatements

186

Supplementary
information

TOTAL REMUNERATION FOR NON-EXECUTIVE DIRECTORSAll non-executive Directors receive an annual cash retainer reflecting the responsibilities and expected timecommitment of each role. Additional fees are therefore paid to the Board Chair, the Lead Independent Director and the
Chairs of the Audit and the Remuneration, Selection and Appointment Committees. In addition, in order to encourageownership and proprietary interest in the company all non-executive Directors receive an annual retainer in shares in
the form of RSUs. The value of this share-based retainer is equal to 100% of the annual cash retainer for the Board
Chair, the Lead Independent Director and the Committee Chairs and 150% of the annual cash retainer for the other
Board members. The fee structure and levels have remained unchanged since first set at the time of the company's
listing in 2020. In line with prior years, the RSUs granted to the non-executive Directors in 2023 vest on the fifth
anniversary of grant, subject to continuous Board membership, without reference to any performance conditions.

The Remuneration Policy for non-executive Directors is simple and transparent in design and consists of the following
elements:

The total remuneration for the non-executive Directors for 2023 was as follows:

Policy element

Design per Remuneration Policy

Implementation in 2023

In EUR

Annual retainer & Committee
fees - cash

•

•
•
•
•

Non-executive Director

Annual retainer - shares••

Reflects responsibilities and expected timecommitment

Awarded in Restricted Share Units (RSUs)
Maximum annual value is 150% of annual
cash retainer fee••

Board Chair: EUR 250,000
Lead Independent Director: EUR 150,000
Committee Chair: EUR 150,000
Other Board members: EUR 100,000

100% of the annual cash retainer for Board
Chair, Lead Independent Director andCommittee Chairs
150% of the annual cash retainer for other
Board members

All expenses reasonably incurred by non-executive Directors in the course of performing their duties are reimbursed at
cost.

Fees in cash63

Fees in shares64

Total 2023

Total 2022

Olivier Goudet

250,000

290,535

540,535

522,781

Luc Vandevelde

150,000

78,447

228,447

197,764

Patricia Capel

100,000

19,288119,288

40,016

Joachim Creus

100,000

78,447

178,447

147,764Frank Engelen

100,000

66,548

166,548

139,386

Ana García Fau

100,000

29,070129,070

67,251

Peter Harf

100,000

138,325

238,325

225,447

Denis Hennequin

100,000

78,447

178,447

147,764

Jeroen Katgert

100,000

29,070129,070

67,251

Paula Lindenberg

100,000

29,070129,070

67,251

Stuart MacFarlane

150,000

78,447

228,447

177,878

Aileen Richards

150,000

78,447

228,447

186,713

Laura Stein

100,000

29,070129,070

67,251

No loans or guarantees were granted to the non-executive Directors in 2023.

63
64

The fees are excluding any expenses grossed-up for taxes.
The LTI value reflects the accounting costs in accordance with IFRS. The value of unvested LTI grants is determined on the grant date and apportioned over the vesting period. The accounting cost for 2023 reflects the 2023 allocation of the LTI grants made in the period 2020-2023.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

The table below provides an overview of the RSU grants in 2023:

Grant value (EUR)

Units outstanding
from previous years

Total units
outstanding at
31 December 2023

Market value at
31 December 2023
(EUR)65

250,000

21,36830,303

738,181150,000

12,821

18,182442,914

6,742

188,630

N.A.

6,742

164,235

Joachim Creus

5,361

150,000

12,821

18,182442,914Frank Engelen

5,361

150,000

10,774

16,135393,049

Peter Harf

5,361

150,000

12,821

18,182442,914

Denis Hennequin

5,361

150,000

12,821

18,182442,914

Stuart MacFarlane

5,361

150,000

12,821

18,182442,914

Aileen Richards

5,361

150,000

12,821

18,182442,914

Ana García Fau

5,361

150,000

3,224

8,585

209,131

Jeroen Katgert

5,361

150,000

3,224

8,585

209,131

Paula Lindenberg

5,361

150,000

3,224

8,585

209,131

Laura Stein

5,361

150,000

3,224

8,585

209,131

Units granted in
2023

Olivier Goudet

8,935

Luc Vandevelde

5,361

Patricia Capel 66

Non-executive Director

The grant date for all RSU awards to non-executive Directors in 2023 was 23 March 2023 at a share price of EUR 27.98. These awards will vest on 23 March 2028.

REFLECTION OF LAST YEAR’S ADVISORY VOTE AND CONFIRMATION OF
NO DEVIATION FROM THE REMUNERATION POLICYAt the 2023 AGM, shareholders approved the Remuneration Report (advisory vote 89.40% in favour). The company has
continued to take into account input from shareholders and proxy advisors to further improve the quality of theRemuneration Report. For example, this year we have further enhanced the level of transparency in relation to theshort-term incentive plan outcome. In addition, the Remuneration, Selection and Appointment Committee tookshareholder feedback into account in formulating the proposed Remuneration Policy which will be put to a vote at the2024 AGM. JDE Peet’s did not deviate from the Remuneration Policy in 2023 for either the executive or non-executive
Directors.

65
66

JDE Peet's share price at 31 December 2023 was EUR 24,36.
The RSU grant of Patricia Capel includes a pro-rata part in relation to 2022 (per start of appointment).

Supplementary
information

187

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

188

ETHICS AND COMPLIANCEOBSERVING THE HIGHEST
STANDARDS OF ETHICS ANDCOMPLIANCE
As the world's leading pure-play coffee & tea company,
we have high ethical standards governing the way weconduct our business, which we also apply to our
suppliers and business partners. Our business practices
and standards reflect our commitment to making a
positive impact on our value chain. We are powered byour purpose "to unleash the possibilities of coffee & tea
to create a better future", and we strive to embed ourvalues in everything we do to pursue this purpose.

BUSINESS ETHICS AND OUR CODES OFCONDUCT
Across JDE Peet’s, we strive to live up to and embody
the values and principles-based culture at the core of
our Codes of Conduct. Our values – discipline,
simplicity, solidarity, entrepreneurship andaccountability – guide us in our everyday dealings withcolleagues, customers, consumers, suppliers,
shareholders, the communities we serve and otherstakeholders.
We expect all employees to fully live up to thecompany’s values, to be accountable for their own
behaviour and to act with integrity and respect forothers at all times. Our Codes of Conduct underline ourcommitment to ethical behaviour and compliance withthe legal requirements of the countries in which we
operate and serve to foster a culture of integrity, ethics
and legal compliance. We conduct a global e-learningof our Code of Conduct every two years.

Our Codes of Conduct Principles
Our Commitments
Asking for help andvoicing concerns

We can only grow and improve as an organisation if we are open and honest with one
another. This is why the company encourages a speak-up culture to report any actual orsuspected misconduct, be it a violation of our Codes of Conduct, policies, our values or
the laws that apply to us. The company does not tolerate any form of retaliation against
those who voice their concerns in good faith.

Acting honestly andethically with eachother

We believe it is important to foster a diverse, inclusive work environment where allideas, perspectives, and backgrounds are considered. We focus on maintaining highstandards for workplace safety, and hold each other accountable for our actions andbehaviour. We do not sacrifice safety for the sake of productivity. We also safeguard
company information.

Acting honestly andethically with ourcustomers andbusiness partners

Upholding our commitment to quality and safety ensures that those who consume our
products enjoy the best possible experience, while those who manufacture, market anddistribute them do so with confidence. As a leader in coffee & tea, we have a
responsibility to deal fairly with others.

Acting honestly andethically with ourcompany and owners

To maintain our market position and preserve the integrity of our corporate brand, we
have a duty to act in our company’s best interest at all times.

Acting honestly andWe have committed to promoting and respecting human rights throughout our
ethically with our global organisation in accordance with internationally declared human rights, including the UN
communities
Guiding Principles on Business and Human Rights and the OECD Guidelines, andadhere to applicable laws within the framework of our business activities. We also
expect our suppliers to uphold these same standards in the work they do for us. We
believe in giving back to our local communities through charitable donations andvolunteer work, and in strengthening and uniting the areas where we live, work, andinnovate.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Our compliance policies, procedures and standards are
the foundation of the company's Complianceprogramme, and are available to employees on thecompany's intranet. Awareness enables our employees
to behave with integrity and act confidently in any
relevant situation. Our compliance programme isreinforced through compliance trainings and awarenesscampaigns.
The company recognises the importance of the tone at
the top when it comes to ethics and compliance. As aresult, the Board's Audit Committee receives a quarterly
report on key compliance matters covering topics that
include updates on policies, speak up reports andpotential incidents relating to corruption and bribery.
This enables the Board to monitor cases of actual orsuspected misconduct or irregularities, and ensure thatindependent investigations are carried out whennecessary.
An effective Compliance programme is one that, bydefinition, continuously adapts to changes andimproves over time. For example, in 2023, we updated
our Human Rights Policy and Supplier Code of Conduct
and revised our Speak Up Policy.

ENCOURAGING EVERYONE TO SPEAK UP
Our company strives to foster a respectful environment
where every employee feels empowered to contributeto the best of their abilities. Accordingly, and in line with
our global compliance strategy, the company iscommitted to promoting a speak up culture. It does so
by fostering an open and trusting dialogue with

Introduction

Strategy andvalue creation

Performance review
and outlook

employees, customers, business partners, suppliers,
investors and other stakeholders.

Governance andrisk management

Financialstatements

189

Supplementary
information

Our Speak Up Policy is available to anyone who wishes
to raise a concern about suspected misconduct. This
includes, for example, employees, persons working foror on behalf of the company, workers throughout our
supply chain, business partners and other stakeholders
such as (representatives of) affected communities or
consumers. Our Speak Up Policy is translated into thelanguages used along our value chain, thus ensuring its
accessibility to different stakeholders. In 2023, we
conducted a speak up awareness campaign in the
APAC region, and in 2024, we plan to conduct further
targeted awareness campaigns to roll out the updated
Speak Up Policy and to foster the speak up culture.

report is followed up with a response to the reporting
party and, when required, promptly investigated so thatappropriate remedial action can be taken where
necessary. The company does not tolerate any form of
retaliation against those who voice their concerns
truthfully and in good faith.
In 2023, the company received a total of 57 reports ofwhich the majority was related to routine humanresources' matters. Other issues frequently reported
through our Speak Up lines in 2023 included allegationsof harassment, use of inappropriate language, andalleged non-compliance with laws/policies (including
alleged fraud). In 2023, the company received 15
reports of alleging discrimination, including harassment.
In 2023, there were no speak up complaints which
revealed any material compliance issues.

We have different channels to report suspected
misconduct, including an online reporting tool (hosted
by an independent service provider) and phone numbers
for each country in which we operate that appear on
JDE Peet’s Speak Up landing page to enable our
employees, suppliers and other stakeholders to easily
raise their concerns. Additionally, we have a dedicatedemail address that can be used to report potential
misconduct or to seek guidance. Reports can besubmitted anonymously if allowed under applicable law.

Based on the investigation outcomes of speak up
reports, we ensure that appropriate mitigation measures
are implemented and that we raise awareness throughdedicated campaigns globally and across the regions,where necessary. In 2023, we undertook acomprehensive global campaign on moral and sexual
harassment situations and other types of discrimination,
including a global e-learning course “Creating a
Respectful Workplace”. Similar campaigns wereconducted in some of our markets.

The company handles all reports respectfully and withdiscretion in accordance with the requirements of its
Speak Up Policy. Our Speak Up Policy further describes
our investigation principles and approach on how we
handle investigations into reported misconduct. Each

COURSES AND TRAINING
At least twice a year, we conduct compliance e-learning
courses for employees on topics such as ethicalbehaviour and principles, competition law, anti-bribery
and corruption, data protection, and human rights. Suchtraining courses are mandatory for all our employeeswith an email address and access to our Learning
Management System. For those employees without
email access, such as certain employees working incertain manufacturing units, we offer shared laptops or
conduct in-person training sessions.
We also regularly conduct face-to-face training courses
for selected target groups. These include, for example,
courses on competition law for sales teams, anti-bribery
and corruption for procurement teams, and dataprotection for marketing and human resources teams.

CONFLICTS OF INTEREST
To preserve the integrity of our brands, we expect all
employees to be free from influences that conflict withthe best interests of our company. Specifically, ourCodes of Conduct lay out the requirement to identify,
assess and manage conflicts of interest, when an
employee's personal interests are in conflict with theperformance of his or her duties or the interests of ourcustomer, suppliers or other stakeholders. Furthermore,
our Gifts, Entertainment and Hospitality Policy
incorporates key requirements and an approval process
for our employees when it comes to accepting or
receiving gifts, entertainment and hospitality to prevent
conflict of interest situations, and includes mandatory
instructions on, for example, maintaining registers.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

ANTI-BRIBERY, ANTI-CORRUPTION, TRADE
SANCTIONS AND ANTI-MONEY LAUNDERINGAs a company present in more than 100 countries, weare committed to conducting business in an ethically
responsible manner and complying with applicable laws
in all countries in which we operate. This commitment
specifically includes compliance with applicable laws
relating to anti-bribery and corruption, gifts,
entertainment and hospitality, export and sanctions
compliance and anti-money laundering, and is set out in
our Anti-Bribery, Anti-Corruption, Trade Sanctions andAnti-Money Laundering Policy, which is consistent with
the United Nations Convention against Corruption. AntiBribery, Anti-Corruption, Trade Sanctions and AntiMoney Laundering Policy is applied to all employees
and is reviewed regularly. Contracts with our business
partners and suppliers include relevant references
including with respect to anti-bribery and corruption.
In addition, our Gifts, Entertainment and Hospitality
Policy, which details the behaviour expected of ouremployees with regard to the giving and receiving ofgifts or entertainment, and our Public Advocacy Policy
regarding interactions with public authorities andofficials in relation to public policy development andimplementation, are important elements in our antibribery and corruption compliance programme.
In line with our Public Advocacy Policy, JDE Peet’sinteracts with government authorities and officials both
67
68

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

directly and via trade associations related to public
policy developments. JDE Peet’s follows all applicable
rules and regulations, and is registered on the EU
Transparency Register.

The company has a comprehensive Sanctions
Compliance Framework in place, which includes
specific sanction compliance toolkits, expanded thirdparty screening and specialised external legal advice.

The company conducts a global e-learning course on
anti-bribery and anti-corruption every two years.
Completion of such e-learning is mandatory for allcompany employees, and people managers have a
responsibility to reinforce the importance of thesetrainings to their teams. Functions exposed tocompliance risk in this area, sales, procurement andoperations teams being the most exposed, receive atailor-made training (including refreshers). Our global elearnings cover topics such as the definition ofcorruption (including facilitation payments), our policies
and procedures, as well as the behaviour expected of
our employees with regard to the prevention, detection
and reporting of any suspicion of bribery or corruption.

As part of our third-party risk management, we have
implemented a comprehensive third-party due diligenceworkflow-powered platform for anti-bribery and anticorruption integrity due diligence, as well as restricted(i.e. sanctioned) third-party screening before engaging
third parties. In 2023, the company continued to
improve its Sanctions Compliance Framework by
integrating an enhanced screening engine into our thirdparty risk management platform to execute heightened
scrutiny of sanctions screening against all prospective
third parties.67

In 2023, the company’s employees followed a global elearning course on anti-bribery, anti-corruption and export
controls, which reached a completion rate of 92%.
The Internal Audit Department conducts periodic,
independent audits of the company’s compliance
processes to assess the effectiveness of internal
controls and procedures in the prevention and detectionof corruption or bribery incidents, and provides
recommendations to develop action plans forstrengthening such controls.

More information on the process of identifying corruption/fraud risk is described in Risk management later in this report.
More information on the process of identifying fair competition risk is described in Risk management later in this report.

No fines were issued against JDE Peet's for anti-bribery
or sanctions violations and no public legal cases were
initiated in this respect in 2023. Furthermore, thecompany made no political contributions in 2023.

FAIR COMPETITION
We are firmly committed to fair competition, including in
relation to our business partners. As such, compliancewith applicable competition laws is essential to thecompany.
Our Competition Law Compliance Policy, which isreviewed periodically, demonstrates our ongoingcommitment to ensuring compliance with applicable

190

competition laws and our Codes of Conduct. In
particular, this policy explains to our employees the
behaviour expected of them regarding interactions
between the company and its competitors, customers
and suppliers, and provides specific guidance in areas
such as trade association meetings.
Essential elements of our competition law complianceprogramme include play books, manuals and trainings.
We also regularly perform risk assessments to identify
and take into account risks that may be present from acompetition law perspective and measures intended tomitigate any remaining material risks. We have definedcompetition law controls, such as protocols to befollowed during trade association meetings.68
No fines were issued against JDE Peet's for competition
law violations in 2023.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

DATA PRIVACY
Our customers, employees and business partners
entrust us with their personal data, and we placeenormous importance on protecting and safeguarding
this information, consistent with the various privacy
laws that apply to our business.
We have a set of data privacy policies in place, called
Binding Corporate Rules, which consist of the Privacy
Code for Employee Data and the Privacy Code forConsumer, Supplier and Business Partner Data. These
policies include procedures relating to data subject
access requests and data breach responses, as well asother processes and tools fostering data privacy. We
have also implemented technical and organisational
measures to prevent the accidental or unlawfuldestruction, loss, alteration, unauthorised disclosure of,or access to, personal data. In addition, our dedicatedprivacy and personal data protection programme, whichis overseen by the company's Global Privacy Council
comprising senior management, includes regularprivacy audits.69
There were no material complaints or issues raised withrespect to data privacy matters and no fines were
issued against the company for data privacy violationsin 2023.

69

More information on the process of identifying privacy risk is described in Risk management later in this report.

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

191

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

192

Supplementary
information

WHAT DO OUR EMPLOYEES THINK ABOUTETHICS & COMPLIANCE ?
JDE Peet’s employees are committed to doing businessacross the world in a manner guided by our values. Our
values require us to deliver results exceptionally and byprioritising Ethics & Compliance.

Viral

Loris

Nadia

Will

Anamaria

KhaledWHEN YOU THINK ABOUT ETHICS ANDCOMPLIANCE, WHAT FIRST COMES TO MIND?

WHAT HAPPENS IF YOU FIND YOURSELF IN ASITUATION WHERE YOU ARE UNSURE ABOUT
WHAT THE RIGHT THING TO DO IS?

HOW DO YOU HANDLE A SITUATION WHERESOMETHING GOES WRONG?

WHEN YOU THINK ABOUT ETHICS ANDCOMPLIANCE, WHAT FIRST COMES TO MIND?

Viral Sheth

Nadia Hoarau-Mwaura

Will Hummel

Khaled Rabbani

Global Tea & Tisane Operations Manager

Sustainability Director

Global Corporate Affairs Director

Chief Legal & Corporate Affairs Officer"For me, compliance is about more than thepolicies driven by management. It is also about
the value we embed in ourselves, which
ultimately makes us accountable for all of ouractions.""We have all been there at some point in ourlives. And it is bound to happen again andagain. There is no problem in asking for help,
regardless of where you sit in the company.
Reach out, ask for support and you will be sureto find it.""Mistakes can happen. What is most importantis that you acknowledge the mistake and you
respond to it. As long as we stay true to ourmoral compass, I believe we can truly unleash
the possibilities of coffee & tea to create abetter and safer future."

Loris Vivien
Global Diversity, Equity and Inclusion Project Specialist

Anamaria Loghin
Global Technical & Logistics Procurement Manager"Well, for me it is really about doing things theright way. And in a way that is open andrespectful, where you are transparent, genuine
and open with each other.""In a situation where something goes wrong, I
think it is important that we all feel safe to talkabout it and not hide it. It is important that we
do not necessarily point fingers, which, I know,
is always a bit hard when the frustration grows.
But at that point, it is more about 'How do we
fix this?' rather than 'What brought us here?'""As important as what we do, is how we dothings. Our value of accountability means that
we not only take ownership for our results, butalso our actions. Doing things well means wealways need to act with integrity regardless of
where we are in the world."

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

193

Supplementary
informationRESPONSIBLE TAX€ 219mIncome tax payments

32.2%
Effective tax rate

APPROACH TO TAX
In line with our Code of Conduct, JDE Peet’s always
aims to be a responsible taxpayer. We have a
responsibility to contribute to society by paying the rightamount of tax in the countries in which we operate,
helping to drive economic and social prosperity. We
believe this is a critical element of our commitment togrow in a sustainable and responsible way.
We comply with the letter and spirit of the law and take
into account the medium- to long-term interests of our
stakeholders. Tax should follow business and, as such,the tax function must act as a partner to the business
when creating and protecting value. In doing so, GroupTax applies robust governance and seeks to minimise
tax risks through proactive tax management of ourbusiness operations and transactions.
We do not engage in tax evasion and we will notundertake transactions with the sole purpose ofcreating a tax benefit which is contrary to the objective
and purpose of relevant tax rules. The EU list of noncooperative jurisdictions for tax purposes is monitored
on an ongoing basis and considered in case ofinvestments in jurisdictions where JDE Peet's is not yet
70

active. Entities within JDE Peet's established in any ofthese jurisdictions, or in a low (<15%) or zero tax rate
jurisdiction, exist for substantive and/or commercial
reasons.

TAX GOVERNANCE, CONTROL AND RISKMANAGEMENTOur Global Tax Policy outlines our tax strategy and our
Guiding Tax Principles and is reviewed and approvedby the Board and Audit Committee. It is reviewed
annually and updated as necessary. The Board isaccountable for the tax strategy and responsibility for
tax risk management is delegated to the CFO and the
Global Tax Director and is overseen by the Audit
Committee.
The effectiveness of our tax strategy depends on thequality of its implementation, execution and monitoring.
Therefore, roles and responsibilities with respect to the
execution of our Global Tax Policy are addressed in our
Tax Control Framework. Our risk appetite for the tax
decisions we take (including those relating to
optimisation opportunities) and implementing ourbusiness models, is low. Key risks regarding theexecution of our Global Tax Policy have been identified
and, where necessary, controls have been put in place
to mitigate the relevant risks.
To minimise tax compliance risk70, Group Tax carries
out a monthly review process to ensure tax payments
are correct, while quarterly confirmation by the local

More information on the process of identifying tax risk is described in the Risk management section of this report.

Finance Director ensures tax returns are filed on time,
are accurate, and are in line with the Global Tax Policy.
We strive to comply fully with all applicable laws andregulations and with our codes of conduct, policies, andprocedures, wherever we do business. Employees andsuppliers can report concerns about unethical or
unlawful behaviour or about activities that compromise
our tax integrity through our whistle-blower hotline.
The Group Tax team maintains an adequate staff ofqualified and trained tax professionals and has global
responsibility for our tax positions. Proper governanceand procedures are in place to ensure that Group Tax is
involved in all significant business developments,
investments and transactions and that tax
consequences are considered as part of every major
business decision. Various training initiatives in place
and are being developed to enable continuous
education on how to deal with tax matters, including thelink between tax strategy, business strategy andsustainable development.

We are open and transparent and develop cooperative
relationships with tax authorities.

We continuously seek to develop and improve our tax
control framework, supported by further investments in
tax technology, to improve data management and thus
the overall quality of direct and indirect tax compliance,
control and reporting. We currently have various
technology initiatives underway, within our direct as wellas indirect tax disciplines, to optimise and upgrade ourtax processes and we have drafted a global tax
technology strategy and roadmap to track and trace
data improvement projects and monitor future digitaltax developments.

Throughout the process of defining our ambition andplan, we closely monitor tax transparency and reporting
developments of both a mandatory and non-mandatory
nature across the globe. We actively consider these
and, if and when appropriate, we will implement
accordingly. We look at the Dutch Tax Governance
Code for best practices as we define our evolving
ambition. At all times, we will ensure full compliancewith all laws and regulations in jurisdictions where we
operate.

TAX TRANSPARENCY
We believe that transparency in terms of both approachto tax and reporting on tax contributes to building trustin society. We firmly believe that tax transparency andreporting should not be viewed in isolation but rather aspart of our overall sustainability journey. This isfurthermore aligned with our general approach toreporting on financial and non-financial performance ina transparent and integrated manner.
As we progress on our sustainability journey, and seek
to continuously improve our disclosures, we further
define our ambition and plan in terms of transparency
and reporting in the area of tax. This includes looking at
data availability and quality, processes and controls,
and the identification of steps required to realise ourambition.

BRAND HIGHLIGHT#1

in market sharein the Netherlands#1

in awarenessin the Netherlands

INSPIRING YOU TO TAKE TIME
FOR YOURSELF AND OTHERS
The rich history of Pickwick started
more than 200 years ago in the
Netherlands. The brand has aleading position in 8 European
markets.
Pickwick is an iconic brand with astrong purpose. The brand inspires
you to take time for yourself andothers. Pickwick delivers uplifting
moments every day for those who
thrive on caring for themselves andothers, because we believe thateveryone can create moments every
day that simply make them feel better.

In 2023, we launched several
innovations within the growing herbal
tea segment, such as Herbal Super
Blends Relax, which is an important
step in driving category value.
Pickwick also continued to build andsupport the successful Ginger
Goodness range, proudly winning a
Wheel of Retail in the Netherlands forbest product innovation in the hot
drinks category.
We also made further progress on ourcommitment to achieve 100%
responsibly sourced tea, and further
advanced our sustainability goals bycompleting our transition to anindustrially compostable tea bag.

Back to brands overview èJDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

195

RISK MANAGEMENTOUR APPROACH
At JDE Peet's, we are committed to effective risk
management to safeguard our stakeholders' interestsand ensure sustainable growth. We have adopted the‘three lines of defence' model. Each actor in this model
plays an important role in providing reasonableassurance that the risks to achieving our objectives are
identified and mitigated. We view risk management as
an ongoing and dynamic process, and are committed tolearning from past experiences, adapting to emerging
threats, and enhancing our risk management
framework.

INTERNAL CONTROLSOur control activities aim to provide reasonableassurance as to the accuracy of financial information, tocomply with applicable laws and regulations, and toprotect the company’s reputation and assets.

THREE LINES OF DEFENCE MODEL
Our first line, local management, is responsible for
identifying, managing and monitoring risks within their
day-to-day activities. Key risk management activities inthis line include the establishment of soft controls andthe execution of formalised controls.
The second line consists of various central departments
which are responsible for setting the Internal Control
and Compliance standards within the group, as well as
monitoring control testing activities and providing

support on risk-related matters to the first line ofdefence.
Our third line of defence, internal audit, serves as anindependent and objective assurance function. Using arisk-based approach, they assess the adequacy andeffectiveness of the first line and second line of defence
in managing risks. Internal audit conducts regular audits
and desktop reviews, identifies control deficiencies, andrecommends improvements to enhance our risk
management processes.

ASSURANCE
Assurance is obtained from local management oncompliance with our Codes of Conduct, standards andpolicies on a quarterly basis, through our Letter ofRepresentation. To raise awareness around key topics,
including our Codes of Conduct and Anti-Bribery andCorruption policy, we have rolled out mandatory elearnings to the organisation on a two-year rotation
schedule.

MONITORING
We have a comprehensive business review andplanning process in place to monitor the adoption of ourstrategy. Business performance is assessed on bothfinancial and non-financial metrics.

IMPROVEMENTS IN OUR INTERNAL CONTROLSFRAMEWORK
We are constantly striving to improve our Internal Risk &Control framework, and in 2023, under the guidance
and oversight of our second line of defence, we took anumber of steps to enhance our standardised internal
controls framework and to improve awareness aroundthe importance of internal controls.

We did this by:• Rolling out an internal controls awareness training
programme towards local management• Redesigning our IT controls framework• Revamping out business controls framework• Formalising controls for our Campos and JDE US
business• Strengthening our ESG-related control framework byadding new controls on our journey to implement
CSRD.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

RISK MANAGEMENT PROCESS
Our enterprise risk management process is outlined
below.

Introduction

Strategy andvalue creation

Performance review
and outlook

standard risk management methodology of quantifying
and qualifying the risks through assessing theirlikelihoods and impacts. The material topics and theirrelated risks have been integrated in the company's
overall risk profile and detailed Enterprise Risk
overview.

OUR MAIN RISKS

Risk assessment is carried out continuously during theyear through horizon scanning, threat development andmitigation effectiveness reviews. The full cycle iscompleted annually with a discussion and alignment on
the company's overall risk profile in the Executive
Committee, and subsequently presented to the Audit
Committee and discussed by the Board.
During the year, a double materiality assessment was
carried out to identify which topics and related risks aremost material to our company. The assessment was
carried out through desktop research, surveys andinterviews with key stakeholder groups using theOverall, our risk portfolio, as described in this section,
did not change substantially in 2023. Sustainabilityrelated risks are re-confirmed through the double
materiality assessment and continue to score amongst
the highest in our risk landscape. Geopolitical risk is
captured separately due to the intensified global
tensions connected to economic uncertainty and armed
conflicts. In previous years, geopolitical risk was
included in our supply security & business continuity
risk. For all risks, we continued to work on
implementing further mitigating measures to ensure ourrisks remain at the appetite levels we have agreed upon.

MACRO-ECONOMIC ENVIRONMENT
The world is confronted with an increasingly complex
and interconnected global risk landscape. Traditional
challenges, such as armed conflicts and economic
instability, continued to play an important role in 2023.
Additionally, they have been complemented by a series
of interlinked emerging threats. Speed of climatechange driving increased regulatory pressure,
intensifying natural disasters and ecological crises.
Cyberattacks posing a digital menace, targeting criticalinfrastructure and data security.

Governance andrisk management

Financialstatements

Supplementary
information

Resurfacing political tensions causing reorganisation of
global structures and redefinition of international trade
agreements. JDE Peet’s continued to closely monitor
developments that impact the macro-economic
environment and closely monitors the company's

196

exposure. The heat map below provides an overview of
our assessment of the company’s main risks, theimpact of those risks, and an evaluation of the likelihoodof those risks occurring.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

We define our risk appetite and actual risk level asfollows:
Appetite

Actual risk level:

AverseAvoidance of risk and uncertainty
in this area is a key objective.

Very Low

The risk is insignificant andrequires minimal attention.

Cautious

Preference for secure andimmediate mitigation, ensuring
likelihood of risk occurring isremote.

Low

The risk is small and can be
managed through routine
procedures.

Prudent

Preference for longer-term
mitigation to manage risk towards
a limited likelihood, prudently
balancing risk and reward.

MediumThe risk is significant but
manageable with additional
controls or mitigations.

Open

Willing to consider appropriate
options that generate higher
rewards.

High

The risk is severe and needs to beaddressed.

HighestEager to be innovative and pursue
opportunities that generate highest
rewards despite greater inherent
risk.

Very HighThe risk is extreme and needs
immediate attention and action.

Governance andrisk management

Financialstatements

Supplementary
information

197

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

198

Strategy pillar

Risk

Risk description

Risk appetite level

Actual risk level

Mitigation actions

Serve More Cups

Product quality

The risk of large product quality issues leading to loss of business due toconsumer dissatisfaction

AverseLow– Internal and external quality measurement systems– Verification and quality audits on all materials– Efficient analytical support mechanism

Serve More Cups

Merger & acquisition (M&A) integration

Failure to develop an accurate business case and the risk that any otherrisk occurs before the newly acquired business achieves JDE Peet’s
standards

Cautious

Low– External deal team with no financial incentives on success– Internal accountability model, driving co-creation of the M&A businesscase– Mature pre-closing due diligence process and post-closing fit/gap
analysis– Local and global teams are guided through the integration journey byintegration governance models– Manage M&A business case delivery through synergy tracking

Serve More Cups

Strategic pricing

The risk that we cannot pass on price increases to our customers to offset
inflation on time and in fullPrudent

Very High– Continue to build power brands– Strong value creation narrative towards external partners– Creation of a strong sustainable innovation pipeline to guarantee
attractiveness for retailers

Serve More Cups

Innovation delivery

The risk that JDE Peet’s is not able to generate and successfully deliver the Cautious
right innovations in the market

Low– Mature governance process and systems in place– Portfolio result analysis– Project closure evaluation– Rolling 36-month innovation plan
– Anticipatory programme management

Serve More Cups

Disruptive technology

The risk that new business models or technologies will disrupt JDE Peet’s'
business model in the long-term

Cautious

Low– Mature horizon scanning process to identify new trends on time
– Dedicated teams working on strategic innovations versus adaptations orvariants to existing products– NPD portfolio management per category and strategic buckets (WIN,
MOVE, CREATE)– Scouting disruptive technology – start up and scale up

Serve More Cups

Non-integrated entities

Non-integrated entities are often locally governed and fall outside theboundaries of centrally defined mitigations, which makes them vulnerable
to any of the centrally defined risks

Cautious

Low– ERM review defined as one of the initial steps in the integration playbook– Standard fit gap analysis checklist available for JDE Peet's complianceframework– Process in place to identify and map the risks in the global ERM scope

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

199

Strategy pillar

Risk

Risk description

Risk appetite level

Actual risk level

Mitigation actions

Master Execution

Data privacy

The risk of serious breaches of GDPR or other privacy laws resulting infines, damage compensation or reputational damage.

AverseVery Low– Mature process on privacy governance– Data processing agreements in place– Privacy audits– Record of processing activities in place– Data breach reporting procedure in place– Privacy policies in place– Periodic training

Master Execution

Competition law

The risk of non-compliance with antitrust laws, leading to claims, court
cases, fines to be paid to either regulators, customers or other parties

AverseLow– Periodic compliance training for all employees, local and specific smallgroup trainings– Commercial play-books available for front-line employees– Anti-trust compliance policies & processes– Anti-trust audits

Master Execution

Tax compliance

Risk of non-compliance to our business model ways of working andchanges in tax laws and regulations can lead to additional tax exposure

Cautious

Medium– Tax controls testing– Business model Governance Board– Design, implementation and review of business/tax complianceframework– We aim for certainty on tax positions and involve third-party tax advice
where needed

Master Execution

Corruption/fraud & sanction compliance

The risk of significant corruption, fraud or sanction non-complianceoccurring

AverseLow– Availability of Speak Up line for both internal and external whistleblowers– Periodic trainings– Mature third-party risk management process and tooling– Internal and external audits– Sanction compliance reviews

Master Execution

Supply security & business continuity

The risk of significant disruption to the supply chain

Prudent

High– Risk management system in place with review on most critical sites andsuppliers– Significant preventive and impact mitigating measures in place in most of
our manufacturing facilities– Identification of alternative manufacturing facilities– Balancing inventory levels between optimised working capital andpotential supply disruption.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

200

Strategy pillar

Risk

Risk description

Risk appetite level

Actual risk level

Mitigation actions

Master Execution

Cybersecurity, IT security & continuity

Failure to protect JDE Peet’s' IT systems from intrusion (both from outside
or inside) and failure to recover the main IT system after an event

Cautious

Very High– Regular security testing, vulnerability scanning and benchmarking.
– Security policy framework & security awareness training & testing– Active vulnerability management– Clearly defined incident management process– Disaster recovery testing on annual basis– Continue to enhance cybersecurity management

Master Execution

FX

Failure to hedge currency risk in a cost-effective way

Prudent

Medium– Derivatives addressing foreign currency debt exposure– Active currency monitoring and risk analysis– Defined processes with transactional hedging of major currencies

Master Execution

Liquidity

Risk that JDE Peet’s cannot meet its debt obligations

AverseVery Low– Active liquidity management with live liquidity models and periodic stresstesting– Active cash upstreaming process to IHQ– Strong and healthy debt maturity profile on different bond markets– Maintaining cash conversion cycle through disciplined AP/AR working
capital– Committed credit and overdraft facilities in place to address short-term
liquidity needs

Master Execution

Commodity sourcing

Failure to buy and make commodities available at equal or better
conditions than peer group, based on fair market conditions

Prudent

Medium– Commodity diversification, Risk Governance Framework and Policy– Performance tracking automated buying– Highly skilled and experienced commodity buying employees

Master Execution

Geopolitical

The risk of negative impacts for JDE Peet's, directly and indirectly, arisingfrom political, economic, or security-related events that affect global
markets, businesses, and international relations

CautiousHigh– Build scenario planning skills– For top 3 most likely scenarios, build and test contingency plans

Grow Together

Food safety/Food law compliance

The risk of consumer food-safety or product mislabelling issue leading toconsumer harm or deception, a large recall, fine, or extensive reputation
damageAverseLow– Adherence to JDE Peet’s' policies and best practices– Monitoring ingredients & finished products to validate compliance toprocess//requirements– Auditing IM and EM plants and validating heat treatment procedures– Ensuring product/packaging/labelling compliance to applicable local/
regional regulations– Scouting activities through trade associations, industry and scientificbodies and external consultancy– Issue & Crisis Management process

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Risk appetite level

Supplementary
information

201

Strategy pillar

Risk

Risk description

Actual risk level

Mitigation actions

Grow Together

Minimising footprint

Cautious
Near to medium-term: Failure to meet environmental targets
Long-term: Physical impact of climate change on JDE Peet’s’ sourcing andsupply chain

Very High– Delivery of SBTi target on GHG Scope 1+2 reduction– Scope 3 delivery of farmer reach initiatives and vendor SBTI commitment
to contribute to GHG reduction– Delivery of packaging intensity (reusable, recyclable compostable)– Definition and deployment of water strategy

Grow Together

Responsible sourcing

Near to medium-term: Potential non-compliance to all applicable laws andregulations. Long-term: Physical impact on JDE Peet's' sourcing andsupply chain

Cautious

Very High– Human Rights Policy updated– Human rights due diligence processes defined and being deployed,
including internal training.
– Ongoing internal assessments executed– Progress on responsible sourcing deployment– Preparation for new EUDR regulation– Delivery of farmer reached targets

Grow Together

Key talent

Inability to retain key employees and to build a healthy talent pool

Cautious

Low– Maintain current high engagement standards– Further improve offer of compensation package in line with the market– Maintain a clear company purpose and an inspiring culture– Associate safety and well-being programme in JDE Peet's business(including human rights, DE&I, human capital)

Grow Together

Distributors and JVs

The risk that any of the other risks occur with a key distributor who is acting Cautious
on JDE Peet’s' behalf

Low– Contracts in place with distributors /JVs.
– Decent selection and onboarding of reliable distributors– Active risk assessment and performance reviews of current partners

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

STATEMENT OF THE BOARD

Introduction•

JDE Peet’s' Board of Directors is responsible for thedesign and operation of the company's internal Risk &Control Framework.
•
In accordance with the best practice provision 1.4.3 ofthe Dutch Corporate Governance Code of December
2022, we have assessed the design and operational
effectiveness of the company's Internal Risk & Control
Framework. The outcome of these reviews was shared
regularly with the Audit Committee and was discussedwith our external auditor. JDE Peet’s' Internal Risk &Control Framework is designed to mitigate the risks
associated to JDE Peet’s' strategy and activities andaims to provide reasonable assurance that our financial
reporting does not contain any material inaccuracies.
• On the basis of the assessments performed, and thecurrent state of affairs, the Board of JDE Peet’s
considers that: this report provides sufficientinsights into any failings in the effectiveness of theinternal risk management and control systems
including strategic, operational, and compliancerisks.
• The internal risk management and control systems
in place provide reasonable assurance that thefinancial reporting does not contain any material
inaccuracies, after taking into consideration thematters identified in the Risk management section.

Strategy andvalue creation

Performance review
and outlook

Based on the current state of affairs, it is justified
that the financial reporting is prepared on a goingconcern basis; please refer to the note 1.1 of theConsolidated Financial Statements section of thisreport.
The report states those material risks anduncertainties that are relevant to the expectation of
the company’s continuity for a period of twelve
months after the preparation of this report. This isjustified under the Risk management section.
However, the Internal Risk & Control Framework
cannot provide full assurance that all control gaps,
material misstatements, cases of fraud, or violationsof laws and regulations will be prevented. Nor can it
provide absolute assurance as to the realisation ofoperational and strategic business objectives.

In accordance with the Dutch Financial Supervision Act,section 5.25c, the Board confirms that, to the best of its
knowledge and belief:• The financial statements for 2023 provide a true andfair view of the consolidated assets, liabilities andfinancial position at 31 December 2023, and of the2023 consolidated profit or loss of JDE Peet’s.
• The annual report provides a true and fair view ofthe situation at 31 December 2023, and thedevelopment and performance of the businessduring the financial year 2023, together with adescription of the principal risks and uncertainties
faced by JDE Peet’s.

Governance andrisk management

Financialstatements

Supplementary
information

202

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

CONSOLIDATEDFINANCIALSTATEMENTS

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

203

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Strategy andvalue creation

Introduction

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

204

TABLE OF CONTENTSCONSOLIDATED INCOME STATEMENT

205

4

Working capital

232

4.1

Inventories

232

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

206

4.2

Trade and other receivables

232

4.3

Trade and other payables

232

5

Capital structure

233

5.1

Shareholders’ equity

234

5.2

Borrowings

235

Cash and cash equivalents

237

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

207

STATEMENTS ON RELEASE FROM THE DUTY TO DISCLOSE
FINANCIAL STATEMENTS

273

COMPANY INCOME STATEMENT

274

COMPANY BALANCE SHEET

276

CONSOLIDATED STATEMENT OF EQUITY

208

5.3
5.4

Finance income and expense

238

CONSOLIDATED STATEMENT OF CASH FLOWS

210

6

Financial risk management

238

NOTES TO THE COMPANY FINANCIAL STATEMENTS

277

6.1

Financial risk factors

240

1

Basis of preparation

277

6.2

Market risk

2412

Summary of signficant accounting policies

277

243

3

Investments in subsidiaries

277

244

4

Trade and other receivables

277

246

5

Loans receivable

278

Shareholders’ equity

279

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1
1.1

Description of business
Reporting entity

211
211
211

6.3
6.4
6.5

Credit risk
Liquidity risk
Fair value estimation

1.2

Use of critical accounting estimates and judgements

212

6.6

Offsetting financial assets and financial liabilities

247

6

1.3

Changes in accounting policies for 2022

213

6.7

Derivative financial instruments

248

7

Trade and other payables

280

1.4

Basis of consolidation

214

251

8

Borrowings

281

1.5

Accounting policies, not attributable to a specific section

214

251

9

Commitments and contingencies

281

256

10

Related party transactions

281

Board remuneration

281

1.6

Update on the war in Ukraine

216

7
7.1
7.2

Governance
Share-based payments
Related-party transactions

2

Group operating performance

217

8

Income taxes

258

11

2.1

Segment information

217

9

Other disclosures

263

2.2

Revenue220

9.1

Post-employment and other long-term employee benefit plans

264

OTHER INFORMATION

283

2.3

Expenses by nature

221

9.2

Provisions

267

2.4

Earnings per share

223

9.3

Other non-current assets

269

INDEPENDENT AUDITOR’S REPORT

285

3Strategic investments and divestments

224

9.4

Other non-current liabilities

269

3.1

Business combinations

224

9.5

Commitments and contingencies

270

3.2

Goodwill and other intangible assets

225

9.6

Subsequent events

271

3.3

Impairments of non-current assets

227

9.7

Legal entities

271

3.4

Property, plant and equipment

229

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

CONSOLIDATED INCOME STATEMENT
For the years ended 31 December 2023 and 31 December 2022

In EUR million, unless stated otherwise
Note

2023

2022

Revenue

2.2

8,191

8,151

Cost of sales

2.3(5,173)(5,146)

Selling, general and administrative expenses

2.3(2,333)(2,056)

685

949
68

Operating profit
Finance income

5.4

104

Finance expense

5.4

(247)

1

(5)

—

537

1,018

(173)

(257)

364

761

Share of net profit / (loss) of associates
Profit before income taxes
Income tax expense

8

Profit for the period

2023

2022

Owners of the parent

ATTRIBUTABLE TO:

367

771

Non-controlling interest

(3)

(10)

Profit for the period

364

761

Note

Earnings per share:
Basic earnings per share (in EUR)

2.4

0.76

1.57

Diluted earnings per share (in EUR)

2.4

0.75

1.55

The accompanying notes are an integral part of these financial statements.

Financialstatements

Supplementary
information

205

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the years ended 31 December 2023 and 31 December 2022
In EUR million
NoteProfit for the period

2023

2022

364

761

(28)

10

Other comprehensive income/(loss), net of tax:
Items that will not be reclassified to profit or loss
– Retirement benefit obligation related items, net of tax

9.1

Items that may be subsequently reclassified to profit or loss
– Foreign currency translation

(95)

52

– Net investment hedge

14

(27)

31

(46)

Other comprehensive income/(loss)– Effective portion of cash flow hedge - foreign exchange contracts

(78)

(11)

Total comprehensive income/(loss) for the period

286

750

Owners of the parent

281

770

Non-controlling interest

5

(20)

286

750

6

Attributable to:Total comprehensive income/(loss) for the period

The accompanying notes are an integral part of these financial statements.

5.1

Financialstatements

Supplementary
information

206

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

207

Supplementary
information

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
For the years ended 31 December 2023 and 31 December 2022
In EUR million
Note

2023

2022

Assets

Note

2023

2022

Equity and liabilities

Non-current assets:

Equity:– Goodwill and other intangible assets

3.2

16,717

17,084– Share capital55– Property, plant and equipment

3.4

1,719

1,740

– Share premium

9,585

9,997

8

49

35

– Treasury stock

(38)

(471)

– Deferred income tax assets

5.1– Derivative financial instruments

6.7

16

46

– Other reserves / (deficits)

(375)

(313)

– Retirement benefit asset

9.1

432

413

– Retained earnings

1,858

1,834

– Other non-current assets

9.3

72

86

– Equity attributable to the owners of the Company

11,035

11,052

19,005

19,404– Non-controlling interest

Current assets:

80

80

11,115

11,132
4,888– Inventories

4.1

1,248

1,356

– Trade and other receivables

4.2

729

828

– Borrowings

5.2

5,388

– Derivative financial instruments

6.7

57

28

– Retirement benefit liabilities

9.1

170

149

– Income tax receivable36

24– Deferred income tax liabilities

8

1,226

1,265

– Net assets held-for-sale18

19– Derivative financial instruments

6.7

41

—

2,048

967

– Provisions

9.2

36

33

4,136

3,222

– Other non-current liabilities

9.4

107

110

23,141

22,626

6,968

6,445

– Cash and cash equivalents
Total assets

5.3

Non-current liabilities:

Current liabilities:– Borrowings– Trade and other payables

5.2

527

79

4.3

4,225

4,704

81

88

– Income tax liability– Provisions

9.2

68

39

– Derivative financial instruments

6.7

157

139

Total equity and liabilities

The accompanying notes are an integral part of these financial statements.

5,058

5,049

23,141

22,626

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

208

Supplementary
information

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the years ended 31 December 2023 and 31 December 2022
In EUR million

Share capital Share premium

Treasury stock

Retirement
benefitobligation
related Items

Currencytranslation
reserve

Total otherCash flow
comprehedge reserve hensive income

Share-based
payments
reserve

Total equity
attributable totheRetained shareholders of Non-controlling
earnings
the Company
interest

Total equity

Balance at 31 December 2021

5

9,975

—

280

(684)

25

(379)

39

1,383

11,023

138

Application of hyperinflationary accounting

—

—

—

—

—

—

—

—

31

31

11

11,161
42

Balance at 1 January 2022

5

9,975

—

280

(684)

25

(379)

39

1,414

11,054149

11,203– Profit for the period

—

—

—

—

—

—

—

—

771

771

(10)

761

– Retirement benefit obligation

—

—

—

10

—

—

10

—

—

10

—

10

– Foreign currency translation

—

—

—

(14)

76

—

62

—

—

62

(10)

52

– Foreign currency contracts

—

—

—

—

—

(46)

(46)

—

—

(46)

—

(46)

– Net investment hedge

—

—

—

—

(27)

—

(27)

—

—

(27)

—

(27)

Total Comprehensive Income/(Loss)

—

—

—

(4)

49

(46)

(1)

—

771

770

(20)

750

– Share-based payment transactions

—

—

—

—

—

—

—

28

—

28

—

28

– Dividends

—

—

—

—

—

—

—

—

(339)

(339)

(1)

(340)

– Share buyback transaction

—

—

(500)

—

—

—

—

—

—

(500)

—

(500)

– Issuance of shares

—

22

29

—

—

—

—

—

—

51

—

51

– Other transactions with shareholders

—

—

—

—

—

—

—

—

(12)

(12)

(48)

(60)

Balance at 31 December 2022

5

9,997

(471)

276

(635)

(21)

(380)

67

1,834

11,052

80

11,132

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Financialstatements

209

Supplementary
information

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
In EUR million

Total equity
attributable totheRetained shareholders of Non-controlling
earnings
the Company
interest

Treasury stock

Retirement
benefitobligation
related Items

Balance at 31 December 2022

5

9,997

(471)

276

(635)

(21)

(380)

67

1,834

11,052

80

Application of hyperinflationary accounting

—

—

—

—

—

—

—

—

(2)

(2)

—

(2)

Balance at 1 January 2023

5

9,997

(471)

276

(635)

(21)

(380)

67

1,832

11,05080

11,130– Profit for the period

—

—

—

—

—

—

—

—

367

367

(3)

364

– Retirement benefit obligation

—

—

—

(28)

—

—

(28)

—

—

(28)

—

(28)

– Foreign currency translation

—

—

—

6

(109)

—

(103)

—

—

(103)

8

(95)

– Foreign currency contracts

—

—

—

—

—

31

31

—

—

31

—

31

– Net investment hedge

—

—

—

—

14

—

14

—

—

14

—

14

Total Comprehensive Income/(Loss)

—

—

—

(22)

(95)

31

(86)

—

367

281

5

286

– Share-based payment transactions

—

—

—

—

—

—

—

24

—

24

—

24

– Dividends

—

—

—

—

—

—

—

—

(339)

(339)

(2)

(341)

– Issuance of shares

—

—

21

—

—

—

—

—

—

21

—

21

– Cancellation of treasury shares

—

(412)

412

—

—

—

—

—

—

—

—

—

– Other transactions with shareholders

—

—

—

—

—

—

—

—

(2)

(2)

(3)

(5)

Balance at 31 December 2023

5

9,585

(38)

254

(730)

10

(466)

91

1,858

11,03580

11,115

Share capital Share premium

Currencytranslation
reserve

Total otherCash flow
comprehedge reserve hensive income

Share-based
payments
reserve

Total equity
11,132

During the Annual General Meeting of Shareholders on 25 May 2023, a dividend of EUR 0.70 per share was approved, payable in two instalments of EUR 0.35 on 14 July 2023 and 26 January 2024. The dividend payable at 31 December 2023
amounted to EUR 170 million, which was recognised within Trade and other payables.
The accompanying notes are an integral part of these financial statements.

JDE Peet's N.V.
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Financialstatements

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Supplementary
information

CONSOLIDATED STATEMENT OF CASH FLOWSFor the years ended 31 December 2023 and 31 December 2022
In EUR million
NoteProfit for the period
Adjustments for:– Depreciation, amortisation and impairments– Defined benefit pension expense– Share-based payments– (Gain) / loss on sale of property, plant, equipment and intangible
assets– Income tax expense– Interest income on bank accounts and other– Interest expense– Provision charges– Derivative financial instruments– Foreign exchange (gains) / losses– Other
Changes in operating assets and liabilities:– Inventories– Trade and other receivables– Trade and other payables
Pension payments
Payments of provisions
Realised foreign exchange (gains) / losses
Receipts from / (payments to) derivative financial instruments
Income tax payments
Net cash provided by operating activities

3.4, 3.2
9.1
7.1

8
5.4
5.4
9.2

5.4

4.1
4.2
4.3
9.1
9.2

2023

2022

364

761

638
(19)
43

417
5
33

6
173
(91)
94
57
125
(45)
1

23
257
(64)
85
28
(332)
263
13

79
116
(478)
(9)
(26)
67
(53)
(219)
823

(470)
(142)
985
(8)
(13)
(249)
252
(238)
1,606

Cash flows from investing activities:
Purchases of property, plant and equipment
Purchases of intangibles
Proceeds from sale of property, plant, equipment and other assets
Acquisition of businesses, net of cash acquired
Loans provided
Interest received
Other investing activities
Net cash used in investing activities
Cash flows from financing activities:
Additions to borrowings
Repayments from borrowings
Share buyback transaction
Receipts from / (payments to) derivative financial instruments
Dividend paid to shareholders
Interest paid
Investments / (divestments) by non-controlling shareholders
Other financing
Net cash used in financing activities
Effect of exchange rate changes on cash
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents – at the start of period
Adjustment for hyperinflationary accounting
Cash and cash equivalents — as of 31 December71

Note

2023

2022

3.4

(272)
(29)
2
(6)
(2)
84
(3)
(226)

(239)
(9)
10
(127)
5
64
3
(293)

989
(89)
—
(1)
(341)
(66)
13
(14)
491
(7)
1,081
967
—
2,048

171
(295)
(500)
69
(345)
(68)
(33)
(19)
(1,020)
11
304
662
1
967

3.2

3.1
7.2

5.2
5.2

6.7
5.1

5.3

The accompanying notes are an integral part of these financial statements.

71

Cash and cash equivalents include restricted cash of EUR 23 million at 31 December 2023 (31 December 2022: EUR 50 million).

JDE Peet's N.V.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended 31 December 2023 and 31 December 2022

1. DESCRIPTION OF BUSINESSTaking into account the characteristics of JDE Peet's' business and business model, the notes to the financial
statements have been grouped into nine thematic sections rather than in a consecutive order based on line-items in theConsolidated primary statements. Each note in a section starts with material accounting policies, if applicable, as wellas the critical accounting estimates and judgements made.
This section contains the disclosures relevant for understanding the basis of preparation of the Consolidated financial
statements:
1. Reporting entity
2. Use of critical accounting estimates and judgements
3. Changes in accounting standards
4. Basis of consolidation
5. Material policy information, not attributable to a specific section
6. Update on the war in Ukraine

The consolidated financial statements for the year ended 31 December 2023 include the financial information of theCompany and its subsidiaries.
These consolidated financial statements were authorised for issuance on 7 March 2024 by the Board of Directors of theCompany.

Activities of JDE Peet's
JDE Peet's is the world's leading pure-play coffee & tea company, serving approximately 4,100 cups of coffee or tea
per second. JDE Peet's unleashes the possibilities of coffee & tea in more than 100 markets with a portfolio of over 50
brands including L’OR, Peet’s, Jacobs, Senseo, Tassimo, Douwe Egberts, OldTown, Super, Pickwick and Moccona. In
2023, JDE Peet’s generated total sales of EUR 8.2 billion and employed a global workforce of 21,196 employees. Read
more about our journey towards a coffee & tea for every cup at www.jdepeets.com.

1.1 REPORTING ENTITYJDE Peet's has a long, rich tradition in the coffee & tea industry, developing its portfolio of over 50 trusted coffee & tea
brands with a deeply rooted heritage. Its established brand portfolio is the largest in the coffee & tea industry,comprising Global Brands (L'OR and Peet's), Regional Brands (including Jacobs, Douwe Egberts, Tassimo, Senseo,
Moccona, Super and OldTown), Local Jewel Brands (including Marcilla, Gevalia, Friele, Bravo and Pilão) and Local
Brands (including Paloma, Café Pelé, Owl and Cafax).

JDE Peet’s N.V. (the “Company” or together with its subsidiaries “JDE Peet's”) is a public limited liability company
under the laws of the Netherlands. The Company was incorporated on 21 November 2018 and is a public company(naamloze vennootschap, N.V.) listed on Euronext Amsterdam. The Company is the holding company of JACOBSDOUWE EGBERTS B.V. (“JDE” or “JDE Group”) and Peet’s Coffee & Tea, Inc. (“Peet’s” or "Peet's Group") through anumber of indirect holding companies. The Company's main direct shareholders are Acorn Holdings B.V. ("Acorn"), a
Dutch subsidiary of Mondelēz International Inc ("Mondelēz holding") and free float. Acorn is fully owned by a Joh. A.
Benckiser led investor group (“JAB”).

It sells its full range of products through a multi-channel distribution model across the CPG, Out-of-Home, retail andonline channels to meet customer and consumer needs, as follows:• CPG72–JDE Peet’s principal products are multi-serve coffee, roast and ground single-serve and double-shot coffee
capsules, whole beans, pads and pods, instant pure and instant mixes, a variety of tea products and ready-to-drink
coffee beverages. JDE Peet's sells these products primarily to supermarkets and, in certain markets, through retailbuying groups comprised of supermarket retailers or shared-services supply chain centres.

All holders of a capital and/or voting interest of three per cent or more are disclosed to the Netherlands Authority for the
Financial Markets ("AFM"). The AFM processes these disclosures in its publicly available register, which can be foundat www.afm.nl.
The Company is headquartered in the Netherlands, the registered office of the Company is Oosterdoksstraat 80, 1011
DK in Amsterdam, the Netherlands (Company registration number: 73160377).
72

CPG is an abbreviation for Consumer Packaged Goods

JDE Peet's N.V.
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•

•

•

JDE Peet’s
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Performance review
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Out-Of-Home–It offers a full range of professional solutions: coffee, tea and complementary coffee systems,
including proprietary liquid coffee concentrate technology; multi-serve coffee; roast and ground single-serve coffee
capsules and pads; whole beans; instant coffee; and ready-to-drink coffee. Its customers include businesses, suchas hotels, hospitals, restaurants, cruise liners and retirement homes, as well as distributors for distribution to thecustomer.
Retail–JDE Peet's operates coffee stores through which it sells whole bean coffee, tea and other beverages andrelated items, such as pastries. At 31 December 2023, JDE Peet's operated Peet’s coffee stores primarily locatedacross the United States but also in China, OldTown coffee stores located in Malaysia, Singapore, Indonesia andHong Kong, 12Oz coffee stores located in Italy and Campos stores located in Australia. Through its coffee stores,
JDE Peet's seeks to facilitate the sale of fresh whole bean coffee and to encourage customer trial of its coffee
through coffee beverages.
Online–JDE Peet's sells its coffee & tea online through its own e-commerce marketplaces, such as the L’OR and
Peet’s marketplaces, and third-party e-commerce marketplaces.

Basis of Preparation
The Company prepared these consolidated financial statements in accordance with International Financial ReportingStandards (“IFRS”) as adopted by the European Union and in conformity with the Dutch Civil Code. Based on thecurrent state of affairs, it is justified that the financial reporting is prepared on a going concern basis. Management
concluded that there are no material uncertainties that may cast significant doubt upon JDE Peet's' ability to continue
as a going concern. For the purpose of these financial statements, the results and financial position of JDE Peet's aremeasured in Euro, its presentation currency.

Segmentation
For purposes of these consolidated financial statements, segmentation is based on how the chief operating decision
maker ("CODM") reviews the performance of the business and allocates resources, as further disclosed in thesegmentation disclosure note.

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212

1.2 USE OF CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
In the application of the accounting policies, management is required to make judgements, estimates and assumptions
about the carrying amounts of assets and liabilities that effect the reported amounts of assets, liabilities, income andexpenses. The estimates and associated assumptions are based on historical experience and other factors that areconsidered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates arerecognised in the period in which the estimate is revised if the revision affects only that period or in the period of therevision and future periods if the revision affects both current and future periods.
Critical Accounting Estimates, Judgements and Assumptions—The following are the key assumptions concerning
the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant riskof resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year, andthe reported amounts of revenues and expenses during the reporting period.

JDE Peet's N.V.
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Reference

Particular area involving significant estimates and judgements

1.4 Basis for consolidation

Assessment whether control as defined under IFRS 10 exists in relation to the operations in
Russia.

2.2 Revenue

Estimating sales incentives, sales returns and marketing accruals.

3.1 Business combinations

Estimating the purchase price allocation including fair values of assets and (contingent)liabilities.

3.2/3.4 Goodwill and other intangible Judgements related to the expected useful lives of long-lived assets and estimating theassets/Property, plant and equipment recoverable amounts. The LARMEA discount rate had significant focus because of thecountry risk premium developments as a result of geopolitical and macroeconomic
circumstances in some markets. In 2022, specific focus was put on the Out-of-Home
segment, with significant estimates for elements such as recovery of business and longerterm adverse effects of COVID-19, cash flow projections of management's initiatives and thediscount rate. In 2023 this segment was combined with CPG Europe into one segment
Europe, see also notes 2.1 and 3.3.
3.3 Impairment of non-current assets Key assumptions used in impairment testing such as cash flows and WACC.
4.3 Trade and other payables

Judgement is required to assess whether supplier financing arrangements containcharacteristics of trade payables, borrowings or both.

6.7 Derivatives financial instruments

Assumptions in relation to fair valuation of derivatives not traded in active markets.

8 Income taxes

Recognition and measurement of current and deferred income tax positions, including therecoverability of tax losses carried forward and determination of contingent income tax
liabilities requires significant judgement.

9.1 Post-employment and other long- Assumptions used in determination of pension assets, pension liabilities, commitments andterm employee benefit plans
pension costs such as discount rates, indexation and inflation.
9.2 Restructuring, legal and otherprovisions

Estimating the likelihood and timing of potential cash flows relating to claims, litigations andrestructurings.

Climate change and nature related
risks

JDE Peet's has assessed the impact of climate change, including transitional and physicalrisks related to climate change and nature related risks, as part the the requirement of the
Task Force on Climate-related Financial Disclosures ("TCFD"), the Task Force on Naturerelated Financial Disclosures ("TNFD") and Science Based Targets Initiative ("SBTi") andconcluded that climate risk does not have a material impact on the consolidated financial
statements. Further consideration of the impact of climate risk is included in the relevant
disclosure notes.

Governance andrisk management

Financialstatements

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information

213

JDE Peet's reviewed the significant accounting estimates and judgements, including the impact on indications for
impairments (note 3.3), provisions (note 9.2) and contingencies (note 9.5). This review did not lead to significant
changes in these accounting estimates and judgements.

1.3 CHANGES IN ACCOUNTING STANDARDSThe Company has applied the following standards and amendments for the first time for their annual reporting period
commencing 1 January 2023:
IFRS 17 Insurance Contracts (including
the June 2020 and December 2021
Amendments to IFRS 17)

JDE Peet's does not have any contracts that require accounting under IFRS 17.

JDE Peet's has adopted the amendments to IAS 1 for the first time in the current year andAmendments to IAS 1 Presentation of
Financial Statements and IFRS Practice reassessed disclosure of its accounting policies against the amendments. As a result,disclosed accounting policy information was amended to meet the new requirements.
Statement 2: Making Materiality
Judgements— Disclosure of Accounting
Policies
Amendments to IAS 12 Income Taxes— JDE Peet's has adopted the amendments to IAS 12 and no changes were made to prior orDeferred Tax related to Assets andcurrent periods.
Liabilities arising from a Single
Transaction
Amendments to IAS 12 Income Taxes— The amendments give companies temporary relief from accounting for deferred taxes
International Tax Reform—Pillar Two
arising from the Organisation for Economic Co-operation and Development’s ("OECD")
Model Rulesinternational tax reform. The OECD published the Pillar Two model rules in December 2021
to ensure that large multinational companies would be subject to a minimum 15% tax rate.
The IASB has decided to develop a temporary exemption on the recognition anddisclosing of information about deferred tax assets and liabilities related to Pillar Two
income taxes. JDE Peet's adopted the amendments to IAS 12 and applied the temporary
exception at 31 December 2023.
Amendments to IAS 8 Accounting
Policies, Changes in Accounting
Estimates and Errors—Definition of
Accounting Estimates

JDE Peet's has adopted the amendments to IAS 8 for the first time in the current year.

The amendments listed above did not have any impact on the amounts recognised in prior periods and do notsignificantly affect the current period.

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New Standards, Amendments and Interpretations issued, but not effective for the year ended 31
December 2023 and not Early Adopted
The following new accounting standards and interpretations effective for accounting periods beginning on or after
1 January 2024, do not have a significant impact on the financial statements of JDE Peet's for the year ended
31 December 2023 nor are expected to have a significant impact in the future:
•
•
•
•
•

Amendments to IFRS 10 and IAS 28 - Sale or contribution of assets between an investor and its associate or joint venture;
Amendments to IAS 1 - Classification of liabilities as current or non-current;
Amendments to IAS 1 - Non-current liabilities with Covenants;
Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements;
Amendments to IFRS 16 - Lease liability in a sale and leaseback.

1.4 BASIS OF CONSOLIDATION
The financial statements include the accounts of all subsidiaries in which the Company, directly or indirectly, has acontrolling interest.
Subsidiaries—Subsidiaries are all entities over which the Company has control. The Company controls an entity when
it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control istransferred to the Company. They are deconsolidated from the date that control ceases. Intergroup transactions,balances and unrealised gains and losses on transactions between companies within JDE Peet's are eliminated upon
consolidation unless they provide evidence of impairment.
Investments in associates—Associates are entities over which the Company has the ability to exercise significant
influence but does not control. Generally, significant influence is presumed to exist when JDE Peet's holds 20% to 50%of the voting rights in an entity. Investments in associates are accounted for using the equity method of accounting andare initially recognised at cost. The investment in associates includes goodwill identified on acquisition, net of any
accumulated impairment loss. JDE Peet's distinguishes between strategically important joint ventures and associates
and other joint ventures and associates. The share of strategically important joint ventures’ and associated companies’
result is disclosed separately within operating profit. The result from other joint ventures’ and associates is reported
below operating profit.

Governance andrisk management

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Supplementary
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214

1.5 MATERIAL POLICY INFORMATION, NOT ATTRIBUTABLE TO A SPECIFIC SECTION
Leases - As lessee
JDE Peet's leases various offices, warehouses, coffee stores, equipment and vehicles. Contracts may contain bothlease and non-lease components. JDE Peet's has elected not to separate lease and non-lease components andinstead accounts for these as a single lease component (gross approach). Operating leases are recognised andpresented as right-of-use assets (within property, plant and equipment) with corresponding liabilities at the date at
which the leased asset is available for use by JDE Peet's.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the netpresent value of the following lease payments:• fixed payments (including in-substance fixed payments), less any lease incentives receivable;• variable lease payment that are based on an index or a rate, initially measured using the index or rate at thecommencement date.
Lease payments to be made under reasonably certain extension options are also included in the measurement of theliability. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases within JDE Peet's, the lessee’s incremental borrowing rate is used,being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similarvalue to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
To determine the incremental borrowing rate, JDE Peet's, where possible, uses recent third-party financing received by
the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing
was received.
JDE Peet's is exposed to potential future increases in variable lease payments based on an index or rate, which are notincluded in the lease liability until they take effect. When adjustments to lease payments based on an index or rate takeeffect, the lease liability is reassessed and adjusted against the right-of-use asset.

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Right-of-use assets are measured at cost comprising the following:• The amount of the initial measurement of lease liability• Any lease payments made at or before the commencement date less any lease incentives received• Any initial direct costs• Restoration costs
Right-of-use assets are generally depreciated over the shorter of the asset's estimated useful life and the lease term ona straight-line basis. If JDE Peet's is reasonably certain to exercise a purchase option, the right-of-use asset isdepreciated over the underlying asset’s estimated useful life. Payments associated with short-term leases of equipment
and vehicles and all leases of low-value assets are recognised on a straight-line basis as an expense in the income
statement. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT
equipment and small items of office furniture.

Governance andrisk management

Financialstatements

215

Supplementary
information

Exchange rates used in financial statements
The following exchange rates are the most relevant in the financial statements:
Currency

2023

2022

Opening rate

0.934

0.880

Average

0.925

0.951

Ending rate

0.906

0.934

Opening rate

0.177

0.158

Average

0.185

0.184

Ending rate

0.187

0.177

Opening rate

0.013

0.012

Average

0.011

0.014

Ending rate

0.010

0.013

Opening rate

1.129

1.190

Average

1.150

1.174

Ending rate

1.153

1.129

Opening rate

0.636

0.639

Average

0.615

0.659

Ending rate

0.617

0.636

Opening rate

0.697

0.652

Average

0.689

0.689

Ending rate

0.686

0.697

US dollar

Brazilian real

Russian ruble

Extension and termination options are included in a number of property and equipment leases across JDE Peet's.
These are used to maximise operational flexibility in terms of managing the assets used in its operations. The majorityof extension and termination options held are exercisable only by JDE Peet's and not by the respective lessor. In
determining the lease term, management considers all facts and circumstances that create an economic incentive to
exercise an extension option, or not exercise a termination option. Extension options (or periods after termination
options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated).
Comparative figures—In note 2.1 the presentation of the comparative financial information was adjusted to conform to
the presentation of the statement of financial position and income statement of the current year. The reclassifications
had no impact on net result or equity.

Pound sterling

Australian dollar

Singapore dollar

JDE Peet's N.V.
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IAS 29 Financial Reporting in Hyperinflationary Economies
Under IAS 29 Financial Reporting in Hyperinflationary Economies, non-monetary assets and liabilities stated athistorical cost, equity and income statements of subsidiaries operating in hyperinflationary economies, are restated forchanges in the general purchasing power of the local currency, applying a general price index. These remeasured
accounts are used for conversion into euro at the period closing exchange rate. As a result, the balance sheet and net
results of subsidiaries operating in hyperinflation economies are stated in terms of the measuring unit current at the endof the reporting period. JDE Peet's is applying IAS 29 to its businesses in Republic of Türkiye since the year ended
31 December 2022.
The following Turkish consumer price indices were used:
2023

2022

1 January

Consumer price index

1,128.45

686.9531 December

1,859.38

1,128.45

Any net monetary gain or loss is recognised as part of the finance expense (see note 5.4).
No restatement of comparative information is required since the presentation currency of these financial statements isin a non-hyperinflationary currency. The impact of hyperinflationary accounting is excluded from JDE Peet's' organic
calculations.

1.6 UPDATE ON THE WAR IN UKRAINEJDE Peet's continuously monitors developments related to the war in Ukraine. Since the start of the conflict, theCompany’s first priority has been, and continues to be, the safety and well-being of its employees in the region. In
addition, the Company has continued to monitor EU and other applicable sanctions. It has not authorised new capital
investments to increase factory capacity or expansion, and all cash dividend payments from the Russian business werecancelled. JDE Peet’s has discontinued investments in advertising and promotion of its international brands. The
factory based in Russia produces primarily on a local-for-local basis.
Since the start of the war, the Company has sought to ensure that its business in Russia is operated as a stand-alone
business to the greatest extent reasonably possible. JDE Peet’s’ business in Russia contributed approximately 5% to
the Company's total revenues and comprises 1% of total assets. Triggered by its stand-alone business operation and

Governance andrisk management

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information

216

changing (sanction) regulations, JDE Peet's continued to assess whether it remained control over its Russian
operations in accordance with IFRS 10 and concluded that it continued to have control over its Russian operations at
31 December 2023.

Key accounting estimate and judgment - JDE Peet's continued to assess whether it remained control over its
Russian operations in accordance with IFRS 10. The assessment considered whether JDE Peet’s remains to have(1) power over the local business, (2) exposure or rights to variable returns from its involvement with the local
business, and (3) the ability to use its power over the local business to affect returns. Based on the review of theaforementioned three key drivers, and although the Russian business transitioned to a stand-alone business to thegreatest extent reasonably possible sanction restrictions made doing business in Russia significantly more
complex, JDE Peet’s concluded that it continued to have control over its Russian operations at 31 December 2023.

Internal events and external circumstances occurring in Ukraine and Russia may result in indications for impairment.
JDE Peet's frequently reviews the valuation of its assets in Russia and Ukraine, including an evaluation of theuncertainties resulting from the war on goodwill and other intangible assets of the wider LARMEA segment which it ispart of. In June 2023, JDE Peet’s decided to transition the international Jacobs brand in the Russian market to the local
Monarch brand. This led to an impairment of EUR 185 million in the Jacobs brand intangible. After this impairment thebrand value allocated to Russia was nil. Furthermore, as part of the annual impairment testing of indefinite useful life
assets, the increased risk of operating in Russia was considered in the WACC applied to cash flows originating fromthe Russian business, thereby impacting the recoverable value of related assets. In addition, the fixed assets owned by
JDE Peet’s in the Russian and Ukrainian markets were assessed, which has not led to additional impairments in 2023.
At 31 December 2023 and throughout the financial year, assessments were made regarding the appropriate operating
model for the Russian local market in the context of the changing sanction regimes and how the changing
circumstances affect related accounting judgements and disclosures. The outcomes of these assessments wereincorporated accordingly in these financial statements.
New sanctions were published by the EU in December 2023 and certain aspects of these sanctions will be in effect asof 20 June 2024. These may affect the assessment regarding control and therefore will be considered in the review for
the financial year 2024 onwards.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

2. GROUP OPERATING PERFORMANCE
2.1 SEGMENT INFORMATIONThe operating segments are Europe, LARMEA, APAC and Peet’s. The segments are organised based on the reporting
structure (by the geographies and/or the nature of the products and services) of JDE Peet's. The segments share asimilar production process, but each segment sells different products to vastly different types of customers andconsumers in different regions of the world. Therefore, none of the operating segments are aggregated. JDE Peet's isoperating as one group.
On 25 April 2023, JDE Peet's announced the combination of the CPG Europe and Out-of-Home segments into one
European segment ("Europe"). The other segments remained unchanged. The relevant changes in the reporting
structure came substantially into effect during the year ended 31 December 2023. The comparative figures wererestated to align with the new segment structure.
Europe, LARMEA and APAC: Within these 3 segments, JDE Peet’s principal products are roast and ground multiserve coffee, roast and ground single-serve coffee pads and capsules, instant coffee and tea. The Europe segment also
includes the Company's European Out-of-Home business which offers a full range of hot beverage products including
liquid roast products and related coffee machines and services. These Out-of-Home products and services are sold,among others, either directly to small-, medium-, and large businesses, hotels, restaurants, universities and hospitals,
or to foodservice distributors for distribution to customer.
JDE Peet's sells its CPG products predominantly through traditional and modern retail trade, like supermarkets,
hypermarkets and e-commerce channels. Europe includes the business activities in Europe, excluding some Eastern
Europe countries. LARMEA includes business activities in Latin America, the United States, the Middle East, Eastern
Europe and Africa, and APAC includes the business activities in the Asia-Pacific region.
Peet’s: The Peet’s segment offers whole bean coffee, beverages, tea and related products through grocery stores,
wholesale, e-commerce, retail, Out-of-Home and company-operated and licensed stores primarily to customers in the
United States and China.

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information

217

Unallocated is not a separate segment as it does not engage in business activities. JDE Peet's presents “Unallocated”
as a reconciling item to the total business results. Unallocated comprises head-office costs (such as central finance,
HR, legal, IT and marketing) and limited revenues from excess production capacity which is made available to third
parties. Segment results are presented before intercompany eliminations, which are eliminated within Unallocated.

Basis of Segmental Reporting
Segment results, that are reported, include items directly allocated to a segment as well as those that can be allocatedon a reasonable basis and taking into account differences between forecasted and actual foreign exchange rates.
Discrete financial information including revenue to Adjusted EBIT for each of the operating segments is provided to the
CODM, the Company's CEO, in order to review operating results, assess performance and make resource allocation
decisions.
In accordance with JDE Peet's' operating model, centralised assets are utilised that serve multiple markets acrossdifferent geographies and segments. Therefore, the Company does not consider the country-level distribution of assets
to be a meaningful indicator of its performance or strategy. Accordingly, JDE Peet's does not disclose this information
to the CODM or in its segment reporting.

Adjusted EBITThe CODM reviews segment profitability based on Adjusted EBIT. Adjusted EBIT is used to measure performance as
management believes that this measurement is the most relevant in evaluating the results of the segments. JDE Peet's
defined Adjusted EBIT as profit for the period, adding back finance income, finance expense, share of net loss of
associates and income tax expense, adjusted for the following factors:
1. ERP system implementation expenses, which represent costs to implement and upgrade to a new ERP system,
including order, billing, payroll and financial systems. Overhead costs incurred in the normal course of business are
not allocated to ERP implementation projects; rather, only incremental costs incurred in direct connection with theimplementation of the ERP project are added back in calculating Adjusted EBIT.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

2. Transformation activities and corporate actions include costs from restructuring and organisational redesign
projects, results from corporate actions and costs from strategic initiatives:
i. Restructuring and organisational redesign costs arise from strategic projects that are related to business
optimisation or cost-saving initiatives. These strategic projects include the closure of factories or significant
changes to the manufacturing footprint or restructuring of retail overhead. Due to the fact that most restructuring
projects or organisational redesign activities span multiple years, management does not consider or describe
these costs as “non-recurring” in nature. However, the specific projects or overarching initiatives themselves areimportant events to understand the operating performance. JDE Peet's therefore adds back these costs in
calculating Adjusted EBIT.
ii. Results from corporate actions arise from activities that are not considered by JDE Peet's to be part of daily
business operations. Such results include items such as fees incurred in relation to refinancing activities,
executive director's severance, pension curtailments and amendments. Such actions generally result frommarket forces that are difficult to predict and are not entirely within the control of JDE Peet's. Therefore, costs
are added back or gains removed in calculating Adjusted EBIT.
iii. Strategic initiatives are broken down and defined as the costs related to evaluating strategic alternatives,
entering into new markets, or launching new strategic initiatives, or other business development costs, to theextent not considered by JDE Peet's as part of the normal operating costs of its business. Therefore, costs areadded back in calculating Adjusted EBIT.
3. Share-based payment expense, which is an operating expense JDE Peet's incurs and is considered a form ofcompensation, varies in amount from period to period, and is affected by market forces, including volatility andother factors, such as forfeitures of awards, that are difficult to predict. Therefore, costs are added back in
calculating Adjusted EBIT.
4. Mark-to-market results consist of economic hedges of certain future risks related to the cost of goods sold. Markto-market adjustments include adjustments for unrealised and realised gains/losses on commodity derivative
instruments. Unrealised mark-to-market adjustments relate to results on green coffee futures and other commodity
derivative instruments for which JDE Peet's has not yet sold the underlying commodity. These results are excluded
when calculating Adjusted EBIT. Upon the subsequent sale of the underlying commodity to customers, the realised
mark-to-market adjustments are recognised in Adjusted EBIT. JDE Peet's believes that such results create volatility
in the current period trends, because mark-to-market amounts vary from period to period and are affected bymarket forces that are difficult to predict and not within the control of management.
5. Merger & Acquisitions/business combination results include: a) acquisition-related costs including legal, due
diligence, professional consulting and other costs incurred as a result of its acquisitions process; b) amortisation
related to intangible assets recognised or remeasured as part of purchase price allocations; c) costs associatedGovernance andrisk management

Financialstatements

218

Supplementary
information

with the integration of acquired businesses, such as directly attributable integration-related labour costs, legal fees
and consulting fees; d) derecognition of the step-up in fair value of inventories resulting from purchase priceallocations; e) fair value changes in contingent consideration obligations; and f) sale results and other costs incurred
as a result of divestments. JDE Peet's does not consider these costs as part of the normal operating costs of its
business. Therefore, costs are added back in calculating Adjusted EBIT.
Adjusted EBIT is reconciled to operating profit and profit before income taxes on a consolidated basis in the tables
presented below.

Segmental information for the consolidated income statement
Revenue (in EUR million):

2023

2022
restated

Europe

4,719

4,548

LARMEA

1,498

1,616

Peet’s

1,153

1,141

APAC

791

814

Unallocated

30

32

8,191

8,151

Total

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Reconciliation of Adjusted EBIT to most directly comparable GAAP measure (in EUR million):
2023

2022
restated

Europe

1,006

926

LARMEA147

296

Peet’s

141

147

APAC

135

Unallocated
Adjusted EBIT

Financialstatements

219

Supplementary
information

Adjusted EBIT of the segments includes depreciation, amortisation and impairment expenses, which amounted to
EUR 298 million (2022: EUR 303 million) (in EUR million):
2023

2022
restated

Europe137

125

LARMEA

16

25

123

Peet’s

82

80

(301)

(265)

APAC

33

33

1,128

1,227

Unallocated

30

40

(7)

(8)

Total

298

303

Transformation activities and corporate actions73

(126)

(67)

Share-based payment expense

(44)

(37)

Mark-to-market results

39

(54)

Amortisation acquired intangible assets and M&A/Deal costs74

(305)

(112)

Operating profit75

685

949

Finance income

104

68

Finance expense

(247)

1

(5)

—

537

1,018

ERP system implementation

Share of net profit / (loss) of associates
Profit before income taxes

Entity-wide disclosures:
The total revenue from external customers, broken down by the location of the selling entity is shown in the following
table (in percentages of total revenue):
2023

2022

United States

13%

14%

France12%11%Germany

10%10%Netherlands

9%8%Rest of World76

56%

57%

Total revenue

100%

100%

There are no individual customers that amounted to 10% or more of JDE Peet's' revenue in both 2023 and 2022.

73

Transformation activities and corporate actions include the expenses related to the establishment of the Europe omni-channel segment and the severance and non-cash impairment related to the intended closure of the instant processing and R&D facilities in Banbury, UK. See also notes 3.4 and 9.2.
This consistently includes amortisation related to intangible assets recognised or remeasured as part of purchase price allocations. In 2023, a non-cash impairment of the Jacobs brand was recognised for an amount of EUR 185 million and a loss on disposal of businesses for an amount of EUR 4 million (2022: nil).
75
In 2023, EUR 410 million of the adjusting items (2022: EUR 214 million) was recognised in selling, general and administrative expenses and EUR 33 million (2022: EUR 64 million) in cost of sales.
76
There is no individual country material to disclose separately.
74

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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Performance review
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2.2 REVENUE
Revenue Recognition—JDE Peet's recognises revenue in accordance with the five-step model introduced by IFRS 15.
Revenue is measured based on the consideration to which it expects to be entitled in a contract with a customer andexcludes amounts collected on behalf of third parties. JDE Peet's recognises sales when the control is transferred andthe performance obligation is satisfied and when specific criteria have been met for each of the activities as described
below. Revenue is recognised when the goods and services are delivered at a point in time or over time, depending on
the nature of transaction. Sales of goods are typically recognised at a point in time, where the revenue related to the
Out-of-Home customer can be recognised at a point in time or over time. Revenue taxes collected from customers are
excluded from revenue and the obligation is included in accrued liabilities until the taxes are remitted to the appropriate
taxing authorities. JDE Peet's bases its estimates on historical results, taking into consideration the type of customer,
the type of transaction and the specifics of each arrangement.
Contracts with Out-of-Home customers—Contracts with Out-of-Home customers may include multiple element
arrangements where performance obligations include both the delivery of products and the lease or sale of coffee
equipment. In some instances, the coffee equipment is provided for free, but the customer agrees to purchase and use
JDE Peet's products. Such contracts may be inclusive of free maintenance of the coffee equipment for a specificperiod. In such situations, JDE Peet's separates the sales transaction into the identifiable performance obligations inorder to reflect the substance of the transaction based on the stand-alone selling prices of these obligations. JDE
Peet's assesses the stand-alone selling prices available for the individual components and allocates the revenue of thetotal transaction in accordance with IFRS 15 Revenue from Contracts with Customers. Revenue derived from a sale ofcoffee equipment is recognised at a point in time. Revenue derived from operational lease and maintenance contracts
are recognised overtime, the duration of these contracts is between 1 to 5 years.
Customer loyalty programmes—JDE Peet's has a customer loyalty programme in the Netherlands whereby
consumers collect points (“award credits”) towards merchandise. The customer loyalty programme has separate
performance obligations whereby the consumer is purchasing the products as well as the award credit. The revenue
associated with the award credit is derived from the product stand-alone selling price and is deferred and recognised
separately as a liability at the time of the initial sale. The estimation of this stand-alone selling price of the award credits
includes consideration of the proportion of the awards expected to be redeemed. The deferred revenue, which isincluded in other non-current liabilities (to the extent that redemption after 12 months is expected) and trade and otherpayables (current portion) in the statement of financial position, is recognised at a point in time when fulfilled.

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220

JDE Peet's revenue consists of the following:• Product sales to third parties (coffee, tea, other food and beverage)—The conditions above are generally met
when the control of the products of categories coffee, tea and other food and beverage is transferred to
distributors, resellers or end customers. In particular, title usually transfers upon receipt of the product at thecustomers’ locations, or upon shipment, as determined by the specific sales terms of the transactions. Revenue
from owned coffee stores are presented net of discounts and recognised at the point of sale for food and beverage
products sold.
• Services (lease revenue and maintenance fees)—JDE Peet's leases coffee machines as a service to certain of its
Out-of-Home customers. Income from these leases is recognised in the income statement based on the policy forleases. In addition, maintenance fees are received related to its Out-of-Home machines, which are recognised on an
accrual basis in accordance with the substance of the relevant agreements. Revenue from fixed-price contracts isgenerally recognised in the period that the maintenance services are rendered, using a straight-line basis over theterm of the contract.
Revenues described above are recognised for individual components and the revenue of the total transaction price isallocated to the individual components by reference to their stand-alone selling price. Trade allowances and productreturns are estimated based on historical results taking into consideration the customer, transaction and specifics ofeach arrangement while also taken into account forward looking information. JDE Peet's provides a variety of sales
incentives to resellers and consumers of its products, and the policies regarding the recognition and presentation ofthese incentives within the income statement are as follows.
Included in revenue:• Discounts, coupons and rebates—The reduction of the transaction price of these non-volume-based incentives isrecognised at a point in time at the later of the date at which the related sale is recognised or the date at which the
incentive is offered. The cost of these incentives is estimated using a number of factors, including historicalutilisation and redemption rates. These incentives are settled in cash and are included in the determination of sales.
• Listing fees—Certain retailers require the payment of listing fees in order to provide space for JDE Peet's productson the retailer’s store shelves. These amounts are included in the transaction price.
• Volume-based incentives—These incentives typically involve rebates or refunds of a specified amount of cash if
the reseller reaches a specified level of sales, taking into account applicable competition laws. Under incentive
programmes of this nature, the incentive is estimated and a portion of the incentive is allocated to reduce eachunderlying sales transaction with the customer overtime.

JDE Peet's N.V.
Annual Report 2023••

JDE Peet’s
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Strategy andvalue creation

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Cooperative advertising—Under these arrangements, JDE Peet's agrees to reimburse the reseller for a portion of
the costs incurred by the reseller to advertise and promote certain of its products. The cost of cooperative
advertising programmes are recognised as a reduction to the transaction price unless the services are considered
distinct which would result in the recognition of the costs as advertising costs.
Fixtures and racks—Store fixtures and racks are provided to retailers to display certain products of JDE Peet's.
The costs of these fixtures and racks are recognised as a reduction of the transaction price.

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221

Supplementary
information

The total revenue from external customers, broken down by product is shown in the following table (in percentages of
total revenue):
2023

2022

Coffee

84 %

85 %

Tea

3%

3%

Other food and beverage

11 %

11 %

Services
Total

Key accounting estimate and judgement—Revenue is recognised for individual components and the totaltransaction price is allocated to the individual components by reference to their stand-alone selling price. JDE
Peet's estimates trade allowances and product returns based on credit risk characteristics of the customer, thedays past due, the transaction and specifics of each arrangement. As described above, JDE Peet's has a varietyof sales incentives, sales returns and marketing accruals. Measuring the fair value of these incentives requires, inmany cases, estimating future customer utilisation, redemption rates and relative fair value. These incentives
include coupons that have prescribed value, but require customer utilisation and redemption rates. Historical
data for similar transactions is used in estimating the fair value of incentive programmes. These estimates arereviewed each period and adjusted based upon actual experience and other available information. Additionally,JDE Peet's has a significant number of trade incentive programmes and other factors outside of its control that
impact the ultimate cost of these incentives. Any significant change in these estimates could potentially have amaterial impact on revenue and profits especially in areas where estimation uncertainty is higher.

Financialstatements

2%

1%

100 %

100 %

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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Governance andrisk management

Financialstatements

2.3 EXPENSES BY NATURE

Employee benefit expense (in EUR million):

Expenses—Expenses are recognised based on the accrual basis of accounting. This means that expenses arerecognised when the product is received or the service is provided regardless of when cash outflow takes place. In
relation to the expenses recognised in relation to depreciation, amortisation and impairments, reference is made to thespecific accounting policies as is included in notes 3.2 and 3.4. In relation to the costs as expensed in relation toinventory, reference is made to the specific accounting policy as is included in note 4.1.

Wages and salaries

2023

2022

1,032

1,012

Social security charges

148

144

Pension costs

47

49

Share-based payments
Total

The aggregate of cost of sales and selling, general and administrative expenses is specified by nature as follows (inEUR million):222

Supplementary
information

43

37

1,270

1,242

Employees by segment (average number of FTEs during the year):

2023

2022

Cost of product

4,213

4,248

2023

2022

Employee benefit expenses78

1,270

1,242

Europe

4,116

4,257

1,333

1,286

LARMEA

2,190

2,273

638

417

APAC

3,644

3,618

52

9

Peet's

4,781

4,377

7,506

7,202

Unallocated80

5,270

5,461

Total

20,001

19,986

Note
77

Other selling, general and administrative expenses79
Depreciation, amortisation and impairment
Restructuring and restructuring related expenses
Total

3.2, 3.4

Employees by geographical area (average number of FTEs during the year):

77

2023

2022

The Netherlands

2,031

2,101

Outside the Netherlands

17,97017,885

Total

20,001

19,986

Cost of product mainly consists of raw materials (green coffee beans, tea leaves and other materials) for 66% (2022: 71%), packaging 13% (2022: 12%), coffee taxes 4% (2022: 4%), outsourced production services 3% (2022: 3%) and inbound freight 2% (2022: 2%).
Employee benefit expenses consist of wages, salaries, pension costs, share-based payments and related social security charges.
79
Other selling, general and administrative expenses in the table above include costs for advertising and promotion, distribution, repairs, maintenance and utilities.
80
Unallocated includes operations (e.g. manufacturing and procurement) and global head office functions.
78

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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Fees for audit services provided by our auditor Deloitte Accountants B.V. include the audit of the financial statements of
the Company and its subsidiaries. Fees for audit related engagements include review on interim financial statements,
prospectus and sustainability assurance engagements. Fees for other non-audit related services include agreed-uponprocedures. A specification of fees paid to our auditors (in EUR million) is stated below:

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The calculation of the basic and diluted earnings per share is based on the following data:

Earnings for the purposes of basic earnings per share being net profit attributable toowners of the Company (in EUR million)

2023

2022

367

771

2023

2022

Audit of the financial statements

6.1

6.1

Audit related engagements

0.8

0.1

Number of shares

Other non-audit related services

0.1

0.2

Total

7.0

6.4

Time-weighted average number of ordinary shares for the purposes of basic earnings per
share

485,747,602

490,787,276

Adjustment for the calculation of diluted earnings per share: Share-based payment plans

6,075,375

6,294,600

491,822,977

497,081,876

Basic EPS (in EUR)

0.76

1.57

Diluted EPS (in EUR)

0.75

1.55

Time-weighted average number of ordinary shares for the purposes of diluted
earnings per share

Which relate to:
Deloitte Accountants B.V.

2.5

1.9

Network of Deloitte Accountants B.V.

4.1

4.0

Other external auditors

0.4

0.5

2.4 EARNINGS PER SHARE
Basic earnings per share (“EPS”) is calculated by dividing the profit for the year attributable to the shareholders of theCompany by the time-weighted average number of common shares outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to the shareholders of the Company by the time-weighted
average number of common shares outstanding during the year adjusted for the time-weighted average number ofcommon shares that would be issued on the conversion of all the dilutive potential common shares into commonshares. At both the level of the Company, and subsidiary level, there are share-based payment plans that should beconsidered in the earnings per share calculation. The share-based payments plans at the subsidiary level are taken into
consideration in the determination of the net profit attributable to owners of the Company.

The total number of shares outstanding (excluding treasury shares) at 31 December 2023 was 486,042,837 (2022:
485,235,677).
Participants receive listed shares in the Company upon vesting and the Company has the obligation to settle/deliver theshares, diluting the shares of the Company. The conversion rates used in the earnings per share calculation are similar
to the conversion rates used in the share-based payment calculations. For further details on the conversion rates andvaluation techniques refer to note 7.1.

JDE Peet's N.V.
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JDE Peet’s
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3. STRATEGIC INVESTMENTS AND DIVESTMENTS
3.1 BUSINESS COMBINATIONSJDE Peet's applies the acquisition method to account for business combinations. The consideration transferred for theacquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred and the equity interests
issued and includes the fair value of any asset or liability resulting from a contingent consideration arrangement.
Acquisitions where a sequence of transactions begins with JDE Peet's gaining control, followed by acquiring additional
ownership interests shortly thereafter, typical in public offers where offers are made to a group of shareholders, areaccounted for as a single transaction. Acquisition-related costs are expensed as incurred. Identifiable assets acquiredand (contingent) liabilities assumed in a business combination are, with limited exceptions, measured initially at their fairvalues at the acquisition date.
•••

Deferred tax assets and liabilities are recognised and measured at acquisition date in accordance with IAS 12.
Assets and liabilities related to employee benefit arrangements are recognised and measured at acquisition date inaccordance with IAS 19.
Share-based payments arrangements are measured at acquisition date in accordance with IFRS 2.

On an acquisition-by-acquisition basis, JDE Peet's recognises any non-controlling interest in the acquiree either at fairvalue or at the non-controlling interest’s proportionate share of the acquiree’s net assets.
The excess of the consideration transferred over the fair value of JDE Peet’s' share of the identifiable net assets
acquired is recognised as goodwill. To the extent applicable, any non-controlling interest in the acquiree and theacquisition-date fair value of any previous equity interest in the acquiree are added to consideration transferred for
purposes of calculating goodwill. If this is less than the fair value of the net assets of the subsidiary acquired in the caseof a bargain purchase, the difference is recognised directly in the income statement.

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224

Key accounting estimate and judgement—The purchase price allocation includes fair values of assets and(contingent) liabilities that are based on information available at the time of determining those values. The valuation
method of determining the fair value depends on the facts and circumstances relating to the specific asset andliability.

Acquisitions during 2023
During 2023, there were no new business combinations. On 24 July 2023, JDE Peet’s announced that it had signed anagreement to acquire 100% of the shares in the Maratá coffee & tea business in Brazil from JAV Group. This acquisition
was completed on 4 January 2024. Reference is made to note 9.6 Subsequent events. Acquisition-related costs
incurred during the year amounted to EUR 2 million.

Acquisitions during 2022
On 12 July 2022, JDE Peet’s acquired L2M Heritage SAS ("L2M"). Through this transaction, JDE Peet's aims to expand
its portfolio in the tisane (herbal tea) and tea market, where it currently has limited market share. JDE Peet’s obtained
control and therefore the acquisition is considered a business combination in accordance with IFRS 3 Business
Combinations. Consequently, purchase price allocations of all identifiable assets and (contingent) liabilities acquired
were performed. The purchase price allocation was finalised in the financial year 2022. Acquisition-related costs
amounted to EUR 2 million.
The transaction resulted in the recognition of the L2M trademark of EUR 46 million and goodwill of EUR 107 million as
intangible assets. The factor contributing most to the recognition of goodwill is the growth ambition of L2M. The
goodwill is not deductible for tax purposes. Since the acquisition, L2M contributed in 2022 revenue of EUR 11 million
and net profit of EUR 2 million.

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The following table summarises the considerations paid and the fair value of assets and (contingent) liabilities acquiredat the acquisition date (in EUR million):
L2M
Property, plant and equipment

5

Identified intangible assets

46

Cash and cash equivalents

7

Borrowings(25)

Deferred income tax liabilities(12)

Other net assets

3

Net assets acquired

24

Goodwill

107

Total consideration in cash for the acquisition

131

Cash consideration paid in 2022

128

Subsequent cash considerations
Total consideration in cash for the acquisition

3
131

If L2M would have been included in JDE Peet's results for an entire year (in the year of acquisition), the revenue and net
profit would have been EUR 22 million and EUR 5 million respectively.

3.2 GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill—Goodwill represents the excess of the cost of an acquisition over the fair value of the JDE Peet’s share of
the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries
is included in goodwill and other intangible assets on the statement of financial position.
Goodwill is not amortised but is tested annually for impairment, or more frequently when events are identified which
require an impairment test, and is carried at cost less accumulated impairment losses. Goodwill is tested on the last
day of the third quarter of the fiscal year, and whenever a significant event occurs or circumstances change that might
reduce the recoverable amount of the goodwill. If the recoverable amount of a cash-generating unit (“CGU”) or a groupof CGUs is less than its carrying amount, the impairment loss is first allocated to goodwill. Any remaining impairment
loss is allocated to all remaining assets in the CGU or group of CGUs. Impairment losses on goodwill are not reversed.
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

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225

Goodwill is allocated to groups of CGUs for the purpose of impairment testing. The allocation is made to those groupsof CGUs that are expected to benefit from the business combination in which the goodwill arose, identified consistent
with the operating segment before any aggregation.
Trademarks and other identifiable intangible assets—The primary identifiable intangible assets of JDE Peet's aretrademarks, brands and other identifiable intangible assets, being mainly customer relationships and technologies, thatwere acquired in business combinations. Trademarks, brands, customer relationships and technologies are recognised
at fair value at acquisition date. The useful life of an intangible asset is assessed as being either finite or indefinite. An
intangible asset is regarded as having an indefinite useful life when, based on all of the relevant factors, there is noforeseeable limit to the period over which the asset is expected to generate net cash inflows for the entity. The term'indefinite' does not mean 'infinite'. There is no expectation that the cash inflows generated by the asset will go on
forever; instead there is no foreseeable point at which the cash inflows will cease. Trademarks with a finite useful life
are based on such things as the years that this trademark is in place and cash inflows generated thus far. Trademarks,
brands, customer relationships and technologies that have a definite useful life are tested when events are identified
which require an impairment test. These intangibles are carried at cost less accumulated amortisation and impairment
losses. Amortisation is calculated using the straight-line method to allocate the cost of trademarks, brands, customer
relationships and acquired technologies over their estimated useful lives.
Software—Software is a separately acquired intangible asset, which is initially measured at cost. After initialrecognition, software should be carried at its cost less any accumulated amortisation and any accumulated impairment
losses. Software is amortised on a straight-line basis over their estimated useful lives.
The estimated useful lives, which are reviewed annually and adjusted if appropriate and are presented as follows:
Trademarks & brands

10 to 30 years, or indefinite

Customer relationships

4 to 15 years

Acquired technologies

7 to 20 years

Software1 to 8 years

Other

5 to 12 years

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The movements of the goodwill and other intangibles assets are as follows (in EUR million):

Goodwill

Trademarks andbrandsComputersoftwareTechnologies

Customer
relationships

Other

Total

12,166

4,445

58

107

162

2

16,940Acquisitions in business combinations

107

46

—

—

—

—

153

Capital expenditures

—

—

9

—

—

—

9

Foreign currency translation

93

22

3

(1)

—

—

117

Amortisation expense

—

(54)

(25)

(22)

(35)

(2)

(138)

Balance at 1 January 2022

Other

—

—

1

—

—

2

3

Balance at 31 December 2022

12,366

4,459

46

84

127

2

17,084Cost

12,366

4,946

230

274

479

18

18,313

—

(487)

(184)

(190)

(352)

(16)

(1,229)17,084

Accumulated amortisation
Balance at 31 December 2022

12,366

4,459

46

84

127

2

Capital expenditures

—

1

26

—

1

1

29

Foreign currency translation

(63)

(16)

1

—

(1)

—

(79)

Impairments81

—

(185)

—

—

—

—

(185)

Amortisation expense

—

(53)

(19)

(22)

(36)

(2)

(132)

Other

(3)

(2)

6

—

—

(1)

—

Balance at 31 December 2023

12,300

4,204

60

62

91

—

16,717

Cost

12,300

4,933

163

275

315

22

18,008

—

(729)

(103)

(213)

(224)

(22)

(1,291)

12,300

4,204

60

62

91

—

16,717

Accumulated amortisation
Balance at 31 December 2023

Trademarks, brands, customer relations and proprietary technology were assessed at their fair value in accordancewith IFRS 3 Business Combinations following the acquisitions made by JDE Peet's. The majority of the trademarks,
brands, customer relationships and proprietary technology were recognised following the acquisition of D.E MASTERBLENDERS 1753 in 2013 and the coffee businesses of Mondelez Holding in July 2015. Software relates to externallyacquired software and includes costs to implement.

81

Reference is made to section 3.3 for background on the impairment charge.

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Amortisation expense is included in the income statement as follows (in EUR million):
2023
Cost of sales

2022

(2)

(1)

Selling, general and administrative expenses

(130)

(137)

Total

(132)

(138)

At 31 December, the principal acquired brands, all of which are regarded as having indefinite useful economic lives, areas follows (in EUR million):
2023

2022

1,048

1,233

Douwe Egberts

668

668

Kenco

412

412

Moccona214

214

Peet's

193

199

Pickwick

175

175

Gevalia

134

134

Maxwell House

118

118

Pilão

14

13

Friele42

45

Other brands

46

47

3,064

3,258

JacobsTotal

3.3 IMPAIRMENT OF NON-CURRENT ASSETS
Assets that are subject to amortisation or depreciation are reviewed for impairment whenever events or circumstancesindicate that the carrying amount may not be recoverable. Assets that have an indefinite useful life, such as trademarks
and brands, are not subject to amortisation and are tested at least annually for impairment or when events orcircumstances indicate that the carrying amount may not be recoverable. When events or circumstances indicate thatan individual asset is not recoverable the asset is tested on an individual basis.

Financialstatements

Supplementary
information

227

The annual impairment test is performed on the last day of the third quarter of the fiscal year or whenever a significant
event occurs or circumstances change that might reduce the recoverable amount of the goodwill. Within this test,
indefinite lived trademarks and brands are tested for impairment as part of the associated CGU annually. When therecoverable amount of a CGU is lower than its net book value ("NBV"), an impairment charge needs to be recognised,provided that the NBV of the CGU after impairment is not lower than zero. This impairment charge is allocated over the
CGU’s assets - taking into account any deferred tax consequences - whereby the indefinite lived brand is one of theassets subject to the allocation. In the allocation of the impairment charge over the CGU’s assets, an asset cannot be
impaired to a value lower than its FVLCD. The FVLCD of an asset is assessed at the total JDE Peet's level and not
limited to a CGU. The Royalty Relief method is used to determine the FVLCD (for both the individual asset, whereapplicable, and annual impairment test), whereby a royalty rate is applied to the brand’s forecasted revenues anddiscounted using the CGU-specific Weighted-Average Cost of Capital (“WACC”).
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s FVLCD or value-in-use ("VIU"). For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. Non-financial
assets, other than goodwill that is impaired, are reviewed for possible reversal of the impairment at each reporting date.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate
of its recoverable amount, limited to the carrying amount that would have been determined had no impairment loss
been recognised for the asset in prior fiscal years.

Key accounting estimate and judgement—JDE Peet's performs impairment reviews by comparing thecarrying value of the CGU concerned to that cash generating unit’s recoverable amount, being the higher of the
VIU and FVLCD. VIU is a valuation derived from the discounted future cash flows of the CGUs. Cash flows areprojected based on the approved 5-year business plan, of which the first year is aligned with the budget for thefollowing year. The coffee price growth per year is assumed to be the expected country-specific annual longterm inflation, which is based on external sources. The cash flows after the 5-year period are extrapolated using
a terminal growth rate equal to the inflation assumption to determine the terminal value. A CGU-specific pre-tax
WACC was applied. The cash flow projections in the impairment assessment utilise those assumptions adopted
in TCFD/TNFD and broader climate and sustainability ambitions Further disclosure is provided on theseestimated initial implementation costs within Climate and nature-related risks and opportunities.

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JDE Peet's reviews these estimates at least annually as of the date of each impairment test and believes them to beappropriate. However, changes in these estimates could change the outcomes of the impairment reviews and therefore
affect future financial results, the effects of which would be recognised in the income statement, through operating profit.

Definite trademarks and brands of JDE Peet's have remaining lives of generally 30 years from the date of acquisition.
As part of the overall impairment test performed with the measurement date 30 September 2023, also the recoverabilityof the CGUs carrying these trademarks was assessed, concluding no impairments to be recognised.

The carrying amount of goodwill at 31 December 2023 is EUR 12,300 million (2022: EUR 12,366 million) and indefinite
lived intangible assets EUR 3,064 million (2022: EUR 3,258 million). The movement over the year is explained by the
impairment of the Jacobs brand and foreign currency translations related to goodwill and indefinite lived intangible
assets.

Goodwill was determined as the difference between the purchase considerations and the fair values of the assets
acquired and the (contingent) liabilities assumed. Goodwill is monitored by management at the operating segment level.

In line with its objective of transitioning the portfolio of its branded products for sale in Russia solely to local brands,
JDE Peet’s decided to transition the international Jacobs brand in the Russian market to the local Monarch brand. The
rebranding of the Jacobs brand in Russia triggered a reassessment of the recoverable amount of this indefinitely lived
intangible asset to EUR 1,048 million, which resulted in an impairment of EUR 185 million at 30 June 2023. After this
impairment the brand value allocated to Russia was nil and consequently reduced the carrying value of the LARMEA
segment, the level at which goodwill is tested for the countries within that segment.
The share of carrying value of the indefinite lived brands over the segments is as follows:
2023

2022 restated

Europe79 %74 %LARMEA5%

10 %Peet's

8%

8%

APAC

8%

8%

Total

100 %

100 %

The operating segments CPG Europe and Out-of-Home merged into one operating segment Europe, see also note 2.1.
JDE Peet's determined that an indefinite useful life is appropriate based on an analysis of all of the relevant factors,
including the long history of the brands, and because there is no foreseeable limit to the period over which the asset is
expected to generate net cash inflows for JDE Peet's.

The following is a summary of goodwill allocation for each operating segment at 31 December (in EUR million):
2023

2022 restated

Europe

9,751

9,750

LARMEA

663

673

Peet's

731

753

APAC

1,155

1,190

Total

12,30012,366

As of the impairment testing date at 30 September 2023, the recoverable amount was determined based on the VIU.
The calculations used pre-tax cash flow projections based on financial budgets approved by management covering theyears through 31 December 2028.
Terminal growth rates
The long-term growth rate is equal to the long-term annual inflation rate specific to the asset or CGU. For someintangible assets, management expects to achieve growth driven by sales, marketing and distribution expertise, which
is significantly in excess of the terminal growth rates for the applicable countries or regions. In these circumstances, therecoverable amount is calculated based on the following inputs: the annual growth rate of the country’s gross domestic
product, aggregated with its inflation rate and adjusted according to the specific asset or CGU.
In order to calculate terminal value, a terminal growth rate is used. This rate is equal to the long-term annual inflation
rate of the country. For brands, the assumptions are based on a weighted-average taking into account the country or
countries where sales are made. The key assumptions (pre-tax discount rates, terminal growth rates and EBITDA
margin growth) used to calculate the VIU for impairment testing are included in the following table (in percentage):

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Property, plant and equipment is depreciated on a straight-line basis over the estimated useful lives of the assets,
except land and assets under construction which are not depreciated. JDE Peet's believes that the wear and tear oneach category of assets is spread evenly over the useful life. The estimated useful lives, which are reviewed annually
and adjusted if appropriate, are presented as follows:

Pre-tax
discount rate

Terminal
growth rate

EBITDA
margingrowthPre-tax
discount rate

Terminal
growth rate

EBITDA
margingrowthEurope9.8 - 16.2%

1.7%

0.6%

8.2 - 16.7%

1.7%

1.5%

LARMEA

10.1 - 28.4%

3.1%

1.5%

8.4 - 31.9%

3.5%

1.7%

Peet's

9.4%

2.5%

8.8 - 10.8%

8.7%

2.5%

13.8%

Buildings and improvements

up to 40 years

APAC

10.5 - 11.1%

1.8%

0.7%

8.9 - 9.9%

1.8%

0.9%

Leasehold improvements

10 to 20 years

Machinery and equipment

up to 25 years

The discount rate is the pre-tax rate of the weighted-average cost of capital. Inputs used to calculate, include cost ofequity (calculated using the risk-free rate, systematic market risk and risk premium) and cost of debt (yield to maturity
on debt). The terminal growth rate was determined to be 2.0% for JDE and 2.5% for Peet's (2022: 2.1% for JDE and2.5% for Peet's). The WACC includes an additional risk premium in relation to the realisation of the cash flow
projections.
Management performed sensitivity analyses around the key assumptions. Management believes that no reasonable
possible changes in key assumptions would cause, in isolation, the recoverable amount of the significant cash
generating units to be less than the carrying value. Specific consideration was given to the value of the Russian
business within the LARMEA segment. The ongoing war in Ukraine and the related geopolitical and macroeconomic
circumstances (see note 1.6), increase the level of estimation uncertainty associated with the Russian country-risk
premiums and underlying business assumptions. Specific analyses were performed, including additional sensitivity
analysis, which did not change the above conclusion.

The assets’ residual values are reviewed annually and adjusted, if appropriate, at the end of each reporting period.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the assets andare recognised in the income statement within selling, general and administrative expenses. An asset’s carrying amountis written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimatedrecoverable amount.

Key accounting estimate and judgement—With respect to impairment of long lived assets, judgements are
made related to the expected useful lives of long-lived assets and their ability to realise undiscounted cash flows
in excess of the carrying amounts of such assets which are affected by factors such as the ongoing
maintenance and improvements of the assets, changes in economic conditions and changes in operating
performance. In assessing the remaining useful lives JDE Peet's concluded that there is no material impact fromclimate risk.

3.4 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is carried at historical cost, less accumulated depreciation and any impairment losses.
The cost of purchased property, plant and equipment is the value of the consideration given to acquire the assets andthe value of other directly attributable costs including, for qualifying assets, capitalised borrowing costs and asset
retirement obligations. Leasehold improvements and other property additions and improvements are included in theasset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to JDE Peet's and the cost of the item can be measured reliably.
The carrying amount of any replaced part is derecognised at the time it is disposed and charged to expense. All repair
and maintenance costs are charged to expense as incurred.

The composition of property, plant and equipment is as follows (in EUR million):
Note

2023

2022

Property, plant and equipment - owned assets

3.4.1

1,475

1,502

Right of use assets

3.4.2

Total

244

238

1,719

1,740

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3.4.1 PROPERTY, PLANT AND EQUIPMENT - OWNED ASSETS

3.4.2 RIGHT OF USE ASSETS

The movements of the property, plant and equipment are as follows (in EUR million):

The movements of the right-of-use assets are as follows (in EUR million):
Right-of-use realestateRight-of-use
vehiclesRight-of-use
other

Total

Balance at 1 January 2022

191

35

7

233

Recognition right-of-use asset

65

12

—

77

Remeasurement/other

(3)

—

—

(3)

239

Foreign currency translation

7

1

—

8

(30)

Depreciation expense

(58)

(18)

(3)

(79)

—

(5)

Transfers

—

1

1

2

—

15

Balance at 31 December 2022

202

31

5

238

—

(3)

(195)

(120)

2

20

186

15

1,850

186

(313)

(1,000)

Balance at 31 December 2022

451

Capital expenditures

Land andbuildings

Machineryandequipment

Assets underconstruction

Other

Total

461

803

175

14

1,453

Acquisitions in business combinations

3

1

1

—

5

Capital expenditures

26

81

130

2

Disposals/other

(10)

(20)

—

—

Impairment

(1)

(3)

(1)

Foreign currency translation

9

5

1

Depreciation expense

(36)

(156)

Transfers

(1)

139

Balance at 31 December 2022

451

850

Cost

764

Accumulated depreciation

Balance at 1 January 2022

Cost

361

76

13

450

Accumulated depreciation

(159)

(45)

(8)

(212)

1,502

Balance at 31 December 2022

202

31

5

238

67

2,867

Recognition right-of-use asset

76

13

1

90

—

(52)

(1,365)

Impairments

(1)

—

—

(1)

850

186

15

1,502

Remeasurement/other

(2)

(2)

—

(4)

17

107

147

1

272

Foreign currency translation

(4)

(1)

(2)

(7)

Disposals/other

(1)

(7)

—

—

(8)

Depreciation expense

(61)

(13)

(1)

(75)

Impairment

(15)

(29)

(7)

—

(51)

Transfers

—

2

—

2

Foreign currency translation

(13)

(20)

(12)

(1)

(46)

Balance at 31 December 2023

211

30

3

244

Depreciation expense

(30)

(162)

—

(3)

(195)

Cost

416

75

13

504

Transfers

17

85

(103)

2

1

Accumulated depreciation

(205)

(45)

(10)

(260)

Balance at 31 December 2023

426

824

211

14

1,475

Balance at 31 December 2023

211

30

3

244

Cost

737

1,884

211

64

2,896

Accumulated depreciation(311)(1,060)—(50)(1,421)

Balance at 31 December 2023

426

824

211

14

1,475

Assets under construction primarily relate to production lines and buildings.
The impairment charge recognised in 2023 mainly related to the intended closure of the production and research &development operations in Banbury, United Kingdom.

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Depreciation expense included in the income statement for the period is as follows (in EUR million):
2023

2022

Cost of sales

(199)

(199)

Selling, general and administrative expenses

(71)

(75)

Total

(270)

(274)

JDE Peet's leases various offices, warehouses, coffee stores, equipment and vehicles. Expenses for short-term leases,
low value leases and variable lease payments amounted to EUR 20 million (2022: EUR 30 million) and were charged tothe income statement. There are no significant lease commitments for leases not commenced at year-end.
JDE Peet's incurred interest expenses on the lease liability of EUR 9 million (2022: EUR 9 million). For lease liabilities,
refer to note 5.2. and for the contractual maturity analysis of lease liabilities refer to note 6.4.
The total cash outflow for leases amounted to EUR 106 million (2022: EUR 111 million).

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The composition of trade and other receivables is as follows (in EUR million):

4.1 INVENTORIESInventories are stated at the lower of cost or net realisable value. Cost is determined by the first-in, first-out method
and includes the impact of rebates, discounts and other cash consideration received from a vendor related to inventory
purchases and the reclassification from equity of any gains or losses on qualifying cash flow hedges relating topurchases of raw material. The cost of finished goods and work in progress comprises design costs, raw materials,
direct labour, and other direct costs, including transportation costs incurred in bringing inventories to their location
immediately prior to external sale, and condition and related production overheads based on normal operating
capacity. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable
selling expenses (i.e. less all estimated costs of completion and costs necessary to make the sale). In addition,
inventories include coffee machines that have not yet been leased.

2023

2022

Trade receivables

563

644

Provision for impairment of trade receivables

(25)

(26)

Trade receivables—net

538

618

Prepaid non-income taxes

94

106

Advance to related parties

1

1

Prepaid assets

54

57

Lease receivable2

3

Deposits

6

4

Other

34

39

Total

729

828

The composition of inventories is as follows (in EUR million):
2023

2022

Raw materials (including packaging)

560

724

Work in progress

191

165

Finished goods (including Out-of-Home machines)

534

496

1,285

1,385

Provision for write downs
Total

(37)

(29)

1,248

1,356

The amount added to the provision is EUR 8 million (2022: EUR 3 million). Reference is made to note 2.3 for the amountof inventories directly recognised as an expense during the period.

4.2 TRADE AND OTHER RECEIVABLES
Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary courseof business. If collection is expected in 12 months or less, they are classified as current. If not, then they are presented
as non-current assets. Trade receivables are recognised initially at their fair value and subsequently measured atamortised cost using the effective interest method, less a provision for impairment.

The charge to and release of the provision for impaired receivables are included in selling, general and administrative
expenses in the income statement, whereby receivables are all assessed on an individual basis. During 2023, anamount of EUR 5 million was charged to the income statement (2022: EUR 8 million) whereby an amount of EUR 4
million was released (2022: EUR 8 million). Amounts charged to the provision are generally written-off when there is no
expectation of recovering.
As of 31 December 2023, an amount of EUR 66 million (2022: EUR 22 million) was past due, of which EUR 19 million
was due more than 30 days (2022: EUR 13 million). Trade receivables not past due at 31 December 2023, were fully
performing. Information about the impairment of trade receivables and exposure to credit risk, market risk and liquidity
risk can be found in note 6 Financial risk management.
The carrying amount of the trade and other receivables is considered a close approximation of their fair value due totheir short maturity.

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4.3 TRADE AND OTHER PAYABLES
Trade payables are obligations to pay for goods or services that were acquired in the ordinary course of business.
Trade and other payables are classified as current liabilities if payment is due within 12 months or less. If not, they arepresented as non-current liabilities. Trade and other payables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method.

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The composition of trade and other payables is as follows (in EUR million):
2023

2022

3,358

3,858

Accrued payroll and benefits

177

175

Accrued trade promotion

269

299

Non-income taxes payable

67

48

Trade payables

Deferred revenue: contract liability

29

29

Key accounting estimate and judgement

Dividend payable

170

170

In evaluating whether liabilities to suppliers who participate in a supply chain finance initiative, utilise notices ofassignment, or act as intermediaries, qualify as trade payables (as opposed to borrowings) judgement isrequired as such arrangements could contain characteristics of both. JDE Peet's considers elements such aschanges in the contractual relationship with the supplier, whether any seniority or collateral is granted on theamounts payable to the supply chain finance party, and the extent to which extended payment terms arecustomary.

Other accrued expenses

Given the customary length of payment terms in the coffee & tea business, it is not uncommon for suppliers of
JDE Peet's to use notices of assignment programmes of financial institutions. Such notices of assignment are all
initiated by, and at the discretion of, the suppliers, and do not change the nature, terms and conditions, orpayment terms of the amounts owed by JDE Peet's. Therefore, such arrangements of suppliers do not modify
JDE Peet's' classification of the trade payables.
Estimates are made in the determination of marketing (trade promotion) accruals. When trade promotions areprovided to customers, these reduce the transaction price and consequently the revenue. The conditional
discounts in revenue (refer to note 2.2) are estimated based on accumulated experience supported by historicaland current sales information. Expected sales volumes are determined taking into account (historical) sales
patterns and other relevant information. A trade promotion accrual is recognised for expected volume and yearend trade promotions payable to customers in relation to sales made until the end of the reporting period.

Total

155

125

4,225

4,704

The carrying amount of the trade and other payables is considered a close approximation of their fair value due to theirshort-term maturity.
Certain suppliers are offered the opportunity to use supply chain financing arrangements (“SCF”), which allows them tocollect the receivable before the invoice date. Supply contracts are evaluated against a number of indicators to assess
whether the payables hold the characteristics of a trade payable or should be classified as borrowings. At 31 December
2023 and 2022 none of the payables subject to SCF met the criteria to be classified as borrowings. The amountoutstanding under SCF at 31 December 2023 amounted to EUR 493 million (2022: EUR 431 million).
Separately, JDE Peet's has contracts with intermediaries, with an outstanding amount at 31 December 2023 of nil(2022: EUR 4 million), which includes financing elements. These contracts qualify as trade payables. The relatedtransactions under SCF and the supply contracts are reflected under cash flows from operating activities.
During the Annual General Meeting of Shareholders on 25 May 2023, a dividend of EUR 0.70 per share was approved,
payable in two instalments of EUR 0.35 on 14 July 2023 and 26 January 2024.

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5. CAPITAL STRUCTURE

Share capital and premium

The key objective of the Company’s capital management is to ensure that it maintains a stable capital structure with thefocus on total equity to uphold investor, creditor and customer confidence and to ensure future development of its
business. The Company focuses on keeping a strong total equity base to ensure independence, security, as well as ahigh financial flexibility for potential future borrowing, if required, without impacting the risk profile of the Company. In
May 2022, JDE Peet's repurchased EUR 500 million of ordinary shares from of Mondelēz International Holdings
Netherlands B.V. ("Share buyback transaction"). The majority of these shares were cancelled on 28 July 2023. Other
than this, there were no major changes made in the objectives, policies or processes for managing capital during theyears ended 31 December 2023 and 2022.

The number of outstanding shares (excluding treasury shares) and nominal value for the years ended 31 December
2023 and 2022 can be summarised as follows (value is stated in EUR million):

The capital structure is reviewed on a regular basis. The capital structure consists of net debt, which includes theborrowings disclosed in note 5.2, net of cash and cash equivalents and equity attributable to the shareholders of theCompany, comprising issued share capital, reserves and retained earnings.

The authorised share capital amounts to EUR 20,000,000, consisting of 2,000,000,000 shares, and is divided into
1,000,000,000 ordinary shares with a nominal value of EUR 0.01 each and 1,000,000,000 preference shares with anominal value of EUR 0.01 each.

Number ofoutstanding
shares at 31
December 2023

Number ofoutstanding
shares at 31
December 2022

Value in
EUR million
2023

Value in
EUR million
2022

Ordinary shares

486,042,837

485,235,677

9,590

10,002

Total share capital and share premium

486,042,837

485,235,677

9,590

10,002

No preference shares were outstanding at 31 December 2023 and 31 December 2022.
The capital structure is managed and adjusted in light of changes in economic conditions and the risk characteristics of
the underlying assets. To maintain or adjust the capital structure, the Company may adjust the dividend payment toshareholders or issue new shares.

Holders of common shares are entitled to dividend distributions as declared from time to time. The Company may only
make distributions to its shareholders if its equity exceeds the amount of the paid-in and called-up part of the issued
capital plus the reserves as required to be maintained by the Articles of Association (if any) or Dutch law.

The Company is not subject to any externally imposed capital requirements other than the legal reserves.

5.1 SHAREHOLDERS’ EQUITY
Translation reserve—The translation reserve comprises foreign currency differences arising from the translation of theassets and liabilities of foreign operations (excluding amounts attributable to non-controlling interests) as well as valuechanges of the hedging instruments in the net investment hedges.
Hedging reserve—This reserve comprises the effective portion of the cumulative net change in the fair value of cash
flow hedging instruments where the hedged transaction has not yet occurred.

Movements in issued and outstanding ordinary shares (Nominal value, share premium and total in EUR million):

Note

Balance at 1 January 2022

Nominal value

Share premium

Total

5

9,975

9,980

Issuance of shares(i)

1,858,139

—

22

22

Share buy-back(ii)(18,573,551)

—

—

—

485,235,677

5

9,997

10,002807,160

—

—

—

—

—

(412)

(412)

486,042,837

5

9,585

9,590

Balance at 31 December 2022
Issuance of shares

Other reserves—These reserves relate to the movements in share-based payments and retirement benefit obligations,
Accounting Policy is described within the respective section above.

Number ofoutstanding
shares
501,951,089

Cancellation treasury shares
Balance at 31 December 2023

(i)

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

In 2023, 807,160 shares were released from the treasury shares to settle vested share-based payment plan (2022:
1,063,371 shares). More information on the share-based payment plans can be found in note 7.1 Share-based
payments. In 2022, 751,849 shares were issued as part of the transaction with Olivier Goudet. More information on thistransaction can be found in note 7.2 Related party transactions.
In May 2022, JDE Peet's executed a share repurchase for a total amount of EUR 500 million. The shares werepurchased from its shareholder Mondelez International Holdings Netherlands B.V. ("MDLZ") at a price per share equal
to the market closing price on Friday 6 May 2022.

Treasury shares
The remaining treasury shares at 31 December 2022, acquired in the buyback transaction, were presented to theshareholders at the 2023 Annual General Meeting for approval to cancel the majority of these shares. On 25 May 2023,
the Annual General Meeting of JDE Peet's resolved to cancel 15.3 million treasury shares. This cancellation came into
effect on 28 July 2023.
Movements in treasury shares (Nominal value in EUR million):
Number of issued
sharesBalance at 1 January 2022
Acquisition of shares through share buyback

Nominal value——

18,573,551(500)

Release of treasury shares(1,063,371)

29

Balance at 31 December 2022

17,510,180(471)(807,160)

21

Cancellation of treasury shares(15,300,000)

412

Balance at 31 December 2023

1,403,020(38)

Release of treasury shares

Governance andrisk management

Financialstatements

Supplementary
information

235

Non-controlling interest
JDE Peet's consolidates JDE, with a 0.16% (2022: 0.25%) non-controlling interest and Peet’s with a 1.75% (2022:
1.78%) non-controlling interest. All other subsidiaries are fully owned or the non-controlling interests are not material.
As the non-controlling interest is not material in 2023 and 2022, the financial information attributable to non-controllinginterests is not disclosed.

5.2 BORROWINGS
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value
is recognised in the income statement over the period of the borrowings using the effective interest method.
An exchange of debt instruments or modification of terms is accounted for as a substantial modification or nonsubstantial modification. For both a non-substantial and substantial modification, a gain or loss is recognised at thetime of recognition. When accounted for as a non-substantial modification, the gain or loss is determined using thedifference between the present value of the cash flows under the original and modified terms discounted at the original
effective interest rate. When accounted for as a substantial modification, the original financial liability is derecognised
and a new financial liability is recognised at fair value.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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Performance review
and outlook

Governance andrisk management

Financialstatements

236

Supplementary
information

Borrowing facilities of JDE Peet's through the years 2022 and 2023 are summarised in the following tables (in EUR million):

Currency

31 December 2021

Business
combinations Unwinding discount

Additions

RepaidAmortisation

Recognition oflease liability Currency translation

31 December 2022

Unsecured notes - EU

EUR

3,089

—

—

—

—

2

—

—

3,091

Unsecured notes - US

USD

1,533

—

—

—

—

1

—

95

1,629

JDE: Other financing

Various

32

25

—

21

(64)

—

—

—

14

Short-term facility

EUR

—

—

—

150

(150)

—

—

—

—

LeasesVarious

250

—

9

—

(81)

(6)

77

7

256

Unamortised discounts and costs

Various

(29)

—

—

—

—

6

—

—

(23)

Total borrowings

4,875

25

9

171

(295)

3

77

102

4,967

Non-current

4,784

4,888

91

79

Current

Currency

31 December 2022

Business
combinations Unwinding discount

Additions

RepaidAmortisation

Recognition oflease liability Currency translation

31 December 2023

Unsecured notes - EU

EUR

3,091

—

—

995

—

2

—

—

4,088

Unsecured notes - US

USD

1,629

—

—

—

—

1

—

(49)

1,581

JDE: Other financing

Various

14

—

—

—

(3)

—

—

(3)

8

LeasesVarious

256

—

12

—

(86)

(5)

91

(7)

261

Unamortised discounts and costs

Various

(23)

—

—

(6)

—

6

—

—

(23)

Total borrowings

4,967

—

12

989

(89)

4

91

(59)

5,915

Non-current

4,888

5,388

79

527

Current

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Unsecured notes
In June 2021, the Company announced the establishment of a Euro Medium Term Note ("EMTN") programme for a
total amount of EUR 5,000 million under which three euro notes were issued on 16 June 2021 for EUR 2,000 million on
the euro MTF market of the Luxembourg Stock Exchange, with the following conditions:
Notes

Pricing

Maturity

Issued amount

Initial fair value

Note 2026

0.000% interest

4.6 years

EUR 750 million

EUR 746 million

Note 2029

0.500% interest

7.6 years

EUR 750 million

EUR 745 million

Note 2033

1.125% interest

12.0 years

EUR 500 million

EUR 499 million

In September 2021, the Company issued USD 1,750 million aggregate principals of notes under rule 144A andRegulation-S, under the Securities Act of 1933 and as a result are not listed on an exchange and consequently not
subject to rules applicable to the exchange, such as Sarbanes-Oxley. The notes comprise of the following three series:
Notes

Pricing

Maturity

Issued amount

Initial fair value

Note 2024

0.800% interest

3.0 years

USD 500 million

USD 499 million

Note 2027

1.375% interest

5.3 years

USD 750 million

USD 745 million

Note 2031

2.250% interest

10.0 years

USD 500 million

USD 498 million

Governance andrisk management

Financialstatements

Supplementary
information

237

All notes were initially recognised at fair value and subsequently measured at amortised costs, the initial fair value of thenotes, except for one euro tranche, was lower than their nominal value since they were offered at a discount. This
discount will be amortised over the lifetime of the notes. All notes are unsecured.
Facility Agreements
JDE Peet's EUR 1,500 million revolving credit facility established in 2021 remained undrawn at 31 December 2023,
similar to 31 December 2022. The agreement is unsecured and no covenants apply, however, certain sustainability
targets were agreed as part of the pricing mechanism.
Other financing
Other financing refers to various trade and cash management non-committed facilities at local subsidiary level inFrance, Italy and Turkey. There are no restrictions or covenants on these facilities.
Additionally, since the start of the war, JDE Peet's business in Russia is operated as a stand-alone business to thegreatest extent possible. As a result, a local one-year facility was set-up in December 2023 for a total amount of RUB 3
billion (equivalent to approximately EUR 30 million at 31 December 2023). The facility is unsecured and no covenants
apply. At 31 December 2023, the facility remained undrawn.
LeasesThe lease liabilities relate to the right-of-use assets as disclosed in note 3.4 Property, plant and equipment.

In November 2021, the Company issued two notes under the EMTN programme:
Notes

Pricing

Maturity

Issued amount

Initial fair value

Note 2028

0.625% interest

6.3 years

EUR 600 million

EUR 597 million

Note 2025

0.244% interest

3.2 years

EUR 500 million

EUR 500 million

In December 2023, the Company issued two new notes under the EMTN programme with proceeds tol be used forgeneral corporate purposes including the refinancing of existing financial liabilities:
Notes

Pricing

Maturity

Issued amount

Initial fair value

Note 2030

4.125% interest

6.2 years

EUR 500 million

EUR 497 million

Note 2034

4.500% interest

10.2 years

EUR 500 million

EUR 498 million

Interest rate swaps and cross-currency interest rate swaps
JDE Peet's used to have multiple interest rate and cross-currency interest rate swaps relating to the prior credit
agreements and the Company's Facilities Agreement entered into on 30 March 2021. Following the full repayment ofthese facilities, above mentioned derivatives became ineffective. In May and June 2022 these interest rate and crosscurrency interest rate swaps were terminated realising the mark to market value.
To hedge the foreign currency and US interest rate exposure associated with the US notes, cross-currency interest rate
swaps were entered into and part is hedged through a net investment hedge. Hedge accounting under IFRS 9 is being
applied for certain instruments, for which more information can be found in note 6 Financial risk management.

JDE Peet's N.V.
Annual Report 2023

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Governance andrisk management

Financialstatements

238

Supplementary
information

5.3 CASH AND CASH EQUIVALENTS

5.4 FINANCE INCOME AND EXPENSE

In the statements of financial position, cash and cash equivalents include cash on hand and other short-term highly
liquid investments, that are readily convertible to known amounts of cash and which are subject to an insignificant riskof changes in value. Any bank overdraft is included in trade and other payables. In the statements of cash flows, anybank overdraft is included as an offset to cash and cash equivalents.

JDE Peet's receives finance income primarily representing interest on cash and cash equivalents, net interest income
from cross-currency interest rate swaps and dividend income from equity derivatives. Interest income and expense on
cashpool arrangements are considered to be an intercompany transaction and are therefore eliminated. Financeexpense primarily relates to interest on borrowings and change in fair value of derivative financial instruments. Theinterest is recognised using the effective interest method.

The composition of cash and cash equivalents is as follows (in EUR million):
Finance income and expense consist of the following (in EUR million):
Cash in bank and on hand

2023

2022

525

552

Cash equivalents

1,523

415

Interest income

91

64

Total

2,048

967

Interest expense82

(94)

(85)

Net financing cost of financial debt

(3)

(21)

2023

2022

At 31 December 2023 an amount of EUR 23 million was not at the free disposal of JDE Peet's (2022: EUR 50 million).
Interest income on plan assets

75

40

Interest expense on defined benefit obligation

(62)

(36)

Total pension finance (expense)/income

13

4

45

(263)

(195)

348

Foreign exchange gain/(loss)
Change in fair value of derivative financial instruments

82

Fair value changes financial liabilities(3)

4

Net monetary gain/(loss)—(3)

Net finance expense

(143)

69

Interest expense primarily includes interest on unsecured notes (2023: EUR 45 million; 2022: EUR 42 million, lease liabilities (2023: EUR 9 million; 2022: EUR 9 million), bank overdrafts (2023: EUR 4 million; 2022: EUR 4 million), amortisation expenses (2023: EUR 6 million; 2022: EUR 6 million) and interest rate

swaps (2023: EUR 0 million; 2022: EUR 13 million).

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
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6. FINANCIAL RISK MANAGEMENT
In accordance with IFRS 9, financial assets are classified into the following categories: a) amortised costs, b) fair value
through profit or loss and c) fair value through OCI. Classification under IFRS 9 for investments in debt instruments isdriven by JDE Peet's' model for managing financial assets and their contractual cash flow characteristics. Management
determines the classification of its financial assets at their initial recognition.
Financial assets are classified as follows:• Financial assets at amortised cost—Assets that are held for collection of contractual cash flows where thosecash flows represent solely payments of principal and interest are measured at amortised cost. Interest income fromthese financial assets is included in finance income using the effective interest rate method. Any gain or loss arisingon derecognition is recognised directly in the income statement and presented in other gains/(losses) together withforeign exchange gains and losses. Impairment losses are presented as a separate line item in the income
statement.
• Financial assets at fair value through OCI—Assets that are held for collection of contractual cash flows and for
selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, aremeasured at fair value through OCI. Movements in the carrying amount are taken through OCI, except for therecognition of impairment gains or losses, interest income and foreign exchange gains and losses which arerecognised in the income statement. When the financial asset is derecognised, the cumulative gain or loss
previously recognised in OCI is reclassified from Equity to the income statement and recognised in other gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate
method. Foreign exchange gains and losses are presented in other gains/(losses) and impairment expenses arepresented as a separate line item in the income statement.
• Assets and liabilities that do not meet the criteria for amortised cost or fair value through OCI are measured at fairvalue through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value throughprofit or loss is recognised in the income statement (in finance expense except for the change in fair value ofcommodity derivative financial instruments which are included in the cost of sales) and presented net within othergains/(losses) in the period in which it arises.
The regular purchases and sales of financial assets are recognised on the trade-date, which is the date on which JDE
Peet's commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows
from the investments have expired or have been transferred and substantially all risks and rewards of ownership weretransferred. Financial assets and liabilities are offset and the net amount is recognised in the statement of financial

Governance andrisk management

Financialstatements

Supplementary
information

239

position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on
a net basis or realise the asset and settle the liability simultaneously.
Impairment of Financial Assets—Upon initial recognition of the financial asset the expected loss is assessed.
Subsequently, at the end of each reporting period it is assessed whether there is objective evidence that a financial
asset or group of financial assets is impaired. The impairment model for financial assets is based on expected credit
loss. A broader range of information is considered when assessing credit risk and measuring expected credit losses,
including past events, current conditions, reasonable and supportable forecasts that affect the expected collectabilityof the future cash flows of the instrument. The impairment methodology applied, depends on whether there has been asignificant increase in credit risk. In applying this forward-looking approach, a distinction is made between the following
categories:• Financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low
credit risk (‘Stage 1’) - ‘12-month expected credit losses’ are recognised for this category.
• Financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit
risk is not low (‘Stage 2’) - ‘lifetime expected credit losses’ are recognised for this category.
• (‘Stage 3’) would cover financial assets that have objective evidence of impairment at the reporting date.
Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the
expected life of the financial instrument. For trade receivables, the simplified approach permitted by IFRS 9 is applied,which requires expected lifetime losses to be recognised from initial recognition of the receivables. The measurementof expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if
there is a default) and the exposure at default. The assessment of the probability of default and loss given default isbased on historical data adjusted by forward-looking information. As for the exposure at default, for financial assets,
this is represented by the assets’ gross carrying amount at the reporting date for financial guarantee contracts, theexposure includes the amount drawn down at the reporting date, together with any additional amounts expected to be
drawn down in the future by default date determined based on historical trend, the understanding of the specific futurefinancing needs of the debtors, and other relevant forward-looking information.
For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are
due to JDE Peet's in accordance with the contract and all the cash flows that are expected to be received, discounted
at the original effective interest rate. For a lease receivable, the cash flows used for determining the expected credit
losses is consistent with the cash flows used in measuring the lease receivable in accordance with IFRS 16.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
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Performance review
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For a financial guarantee contract, as JDE Peet's is required to make payments only in the event of a default by the
debtor in accordance with the terms of the instrument that is guaranteed, the expected loss allowance is the expected
payments to reimburse the holder for a credit loss that it incurs less any amounts that are expected to be received fromthe holder, the debtor or any other party.
When a loss allowance was measured for a financial instrument at an amount equal to lifetime expected credit loss("ECL") in the previous reporting period, but determines at the current reporting date that the conditions for lifetime ECL
are no longer met, the loss allowance is measured at an amount equal to 12-month ECL at the current reporting date,
except for assets for which the simplified approach was used.
An impairment gain or loss is recognised in profit or loss for all financial instruments with a corresponding adjustment
to their carrying amount through a loss allowance account, except for investments in debt instruments that aremeasured at fair value through OCI, for which the loss allowance is recognised in other comprehensive income andaccumulated in the investment revaluation reserve, and does not reduce the carrying amount of the financial asset in
the statement of financial position.
On assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, acomparison is made with the risk of a default occurring on the financial instrument at the reporting date with the risk ofa default occurring on the financial instrument at the date of initial recognition. In making this assessment, bothquantitative and qualitative information are considered that is reasonable and supportable, including historicalexperience and forward-looking information that is available without undue cost or effort. Forward-looking informationconsidered includes the future prospects of the industries in which JDE Peet’s' debtors operate, obtained from
economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations,as well as consideration of various external sources of actual and forecast economic information that relate to JDE
Peet’s' core operations.

Governance andrisk management

Financialstatements

Supplementary
information

240

In particular, the following information is taken into account when assessing whether credit risk has increased
significantly since initial recognition:• An actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit
rating.
• Significant deterioration in external market indicators of credit risk for a particular financial instrument, e.g. a
significant increase in the credit spread, the credit default swap prices for the debtor, or the length of time or theextent to which the fair value of a financial asset has been less than its amortised cost.
• Existing or forecast adverse changes in business, financial or economic conditions that are expected to cause asignificant decrease in the debtor’s ability to meet its debt obligations.
• An actual or expected significant deterioration in the operating results of the debtor.
• Significant increases in credit risk on other financial instruments of the same debtor.
• An actual or expected significant adverse change in the regulatory, economic, or technological environment of the
debtor that results in a significant decrease in the debtor’s ability to meet its debt obligations.
Irrespective of the outcome of the above assessment, JDE Peet's presumes that the credit risk on a financial asset has
increased significantly since initial recognition when contractual payments are more than 30 days past due, unless JDE
Peet's has reasonable and supportable information that demonstrates otherwise.
JDE Peet's considers a financial asset to have low credit risk when the asset has an external credit rating of ‘investment
grade’ in accordance with the globally understood definition or if an external rating is not available, the asset has aninternal rating of ‘performing’. Performing means that the counterparty has a strong financial position and there are nopast due amounts.

JDE Peet's N.V.
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JDE Peet’s
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Governance andrisk management

Financialstatements

6.1 FINANCIAL RISK FACTORS

6.2 MARKET RISKJDE Peet’s' activities are exposed to a variety of financial risks: market risk (including commodity price risk, foreignexchange risk, interest rate and equity risk), credit risk and liquidity risk. All these risks arise in the normal course ofbusiness. JDE Peet's overall risk management programme focuses on the unpredictability of financial markets andseeks to minimise potential adverse effects on financial performance. To mitigate the risk from interest rates, foreign
currency exchange rates, equity and commodity price fluctuations, various derivative financial instruments are used inaccordance with JDE Peet's' policies and procedures.

Commodity price risk

Some of the cross-currency interest rate swaps and foreign currency components of non-derivative financial
instruments are designated as hedging instruments and hedge accounting is applied. In addition, hedge accounting isapplied for highly probable forecasted transactions like certain foreign currency exposures related to the purchase ofcommodities and investment transactions. Other derivatives are accounted for at fair value through the profit and loss.
JDE Peet's does not enter into financial instruments for trading purposes and is not a party to any leveraged
derivatives.

Risk management
JDE Peet's maintains risk management frameworks and control systems to monitor the foreign exchange, interest rate,equity and commodity price risk and its offsetting hedge positions. Periodically, sensitivity analyses are completed toevaluate the effect of any changes in interest rate, equity prices, commodity prices and foreign currencies and theassociated risk derivatives.

241

Supplementary
information

Commodity price risk arises primarily from transactions related to global commodity markets. JDE Peet’s' objective is
to minimise the impact of commodity price fluctuations. The exposure is hedged in accordance with JDE Peet’s'
policies and risk management programme. The green coffee commodity risk is mainly managed at regional locations,being the US, the Netherlands, Brazil, Vietnam and Indonesia. The green coffee commodity price risk exposure of
anticipated future purchases is managed primarily using futures and forward contracts, which are eventually rolled-overinto physical contracts. Through these derivatives, JDE Peet's is able to fix a portion of its price for anticipated futuredeliveries of green coffee beans, for instance, for a specified period of time.
JDE Peet's only enters into futures contracts that are traded on established, well-recognised exchanges, named ICE
and IFFE that offer high liquidity, transparent pricing, daily cash settlement and collateralisation through margin
requirements.
During 2023, the Company expanded its financial hedging strategy to the coverage of other commodity price risks,such as energy and aluminium, evolving from fixed priced contracts with suppliers to (partially) variable priced contracts
in combination with derivative instruments with global relationship banks in order to detach the supply from thefinancial risk. As a result of the short product business cycle, the majority of the anticipated future commodities
transactions outstanding at the statement of financial position date are expected to occur in the next year.
The table below show the estimated impact on profit before tax and equity reserves if underlying commodity prices
would have changed by 10% (commodities for which JDE Peet's held material derivative exposures at 31 December
2023 and 31 December 2022):

Change in yearend priceEffect on profit
before tax
In EUR million

Effect on equity
In EUR million

Coffee beans and other commodities - 2023

10%

7

—

Coffee beans and other commodities - 2023

(10)%

(7)

—

Coffee beans - 2022

10 %

33

—

Coffee beans - 2022

(10)%

(27)

—

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

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Performance review
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Foreign exchange risk
JDE Peet's operates internationally and is exposed to foreign exchange risk arising from various currency exposures.
Foreign exchange risk arises primarily from commercial transactions such as the purchase of commodities, recognised
monetary assets and liabilities and net investments in foreign operations. JDE Peet's is exposed to numerous foreign
currencies. The most important ones are the US dollar and the Pound sterling.

Governance andrisk management

Financialstatements

242

Supplementary
information

A sensitivity analysis shows that if foreign exchange rates change by 10 percent profit and equity would have been
affected as follows (in EUR million):
Profit or Loss

Equity, pre-tax

Strengthening

Weakening

Strengthening

Weakening

(77)

77

(125)

135

(150)

182

(202)

248

31 December 2023

Mainly forward exchange contracts are used to reduce the effect of fluctuating foreign currencies on foreign currency
denominated transactions, third-party product-sourcing transactions and other known foreign currency exposures.
Gains and losses on the derivative instruments are intended to offset gains and losses on the associated transaction inan effort to reduce the earnings volatility resulting from fluctuating foreign currency exchange rates. Forward currency
exchange contracts mature either at the anticipated invoice date or at the actual payment date of the associatedtransaction. Most of the transactions directly relate to the business-as-usual operations, but could also relate to ad-hoc
strategic transactions such as the acquisition of Maratá's coffee & tea business in Brazil announced by JDE Peet's inJuly 2023 and completed in 2024.
Some foreign exchange derivatives are designated as hedging instruments for accounting purposes and cash flow
hedge accounting on those hedges is applied. The fair value of these hedging instruments is recognised on the
consolidated statement of financial position and the effective portion of fair value changes is recognised in the cash
flow hedge reserve in the consolidated statement of comprehensive income. The change in fair value on the otherforeign exchange derivatives is recognised directly in the consolidated income statement.
The Company also designates certain derivatives and non-derivative financial liabilities as hedges of foreign exchange
risk related to the net investment in a foreign operation. These instruments hedge foreign operations in multiple foreign
currencies, such as the US dollar and since 2023 also the Chinese yuan. Among others, JDE Peet's is exposed tofluctuations in US dollar as a result of entering into US-dollar denominated debt instruments. Next to hedging this risk
via cross-currency interest rate swaps, JDE Peet's designated several derivative and non-derivative financial
instruments as hedging instruments to net investment hedges. By implementing this net investment hedge, JDE Peet's
is exposed to currency translation risk resulting from fluctuations in foreign currency exchange spot rates that affect themeasurement of the investment in subsidiaries which are offset by the currency exposure on the US debt instruments.
Hedge accounting is applied to these net investment hedges.

+/-10%
31 December 2022+/-10%

Fair value movements related to the effective part of foreign exchange and interest rate contracts that are designated in
hedging relationships are recognised directly in the cash flow hedge reserve (net of tax), a separate component within
Equity.

Interest rate risk
JDE Peet's is primarily financed through bonds of which part denominated in US- dollar and at fixed interest rates
which reduces the risk of fluctuations in the interest rate risk on JDE Peet's. Part of the fixed unsecured US-dollar notes
are swapped using cross-currency interest rate swaps with a fixed interest for which hedge accounting is applied.
At year end 2022, part of the cross-currency interest rate swaps were reset for the foreign currency component torealign the economics of the hedge with the economics of JDE Peet's net debt, settling in cash of EUR 69 million ofderivative assets. From an IFRS 9 point of view the old hedge relationship is considered to be broken while a newhedge relationship is immediately setup from reset date. Therefore, the reset did not result in any additional releases tothe income statement. Furthermore, in 2023 one of the hedge relationships to which hedge account was applied
became ineffective, after which the results were directly recognised in profit and loss. Until the moment of
ineffectiveness, the results remained in OCI until the instrument is derecognised. A loss, net of tax, of EUR 8 million wasrecognised in OCI during 2023 (2022: EUR 11 million gain).
The sensitivity analysis on the foreign currency component of these swaps is included in the foreign exchange section
above.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
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Equity price risk
JDE Peet's is exposed to an equity price risk on its shares upon vesting of its share-based payment plans (refer to note
7.1 Share-based payments). This risk could negatively impact future cash flows related to these plans. To mitigate thisequity price risk, JDE Peet's hedges the price risk on its shares by entering into total return equity swaps with external
parties. JDE Peet's has no obligation to purchase the underlying shares of this swap transaction and is entitled toreceive the dividends on these underlying shares. Upon settlement of the swap, only the fair value changes of theunderlying shares will be settled. This derivative is accounted for as a financial instrument through profit and loss anddoes not qualify for hedge accounting. All results related to this transaction are recognised directly in the consolidated
income statement. At 31 December 2023, an exposure of an equivalent of 7.2 million shares (2022: 7.2 million shares) in
the Company was hedged, resulting in the recognition of a liability of EUR 49 million (2022: EUR 30 million), dividend
income of EUR 5 million (2022: EUR 5 million) and an unrealised result of EUR 19 million in financial income andexpense (2022: EUR 2 million).
In addition and using similar total return equity swaps with external parties, the Company started a strategic equity
hedging programme in 2022 with a maximum size of EUR 500 million. The purpose of this programme is to hedge theCompany’s equity price risk related to future share repurchases (either exposure under future share-based payments
programmes, management equity incentive schemes, share capital reduction or other future share delivery obligations,or a mix of these), which the Company intends to in the future. As a result of these hedges, material movements in JDE
Peet’s share price could result in a material unrealised gain or loss for the Company. All results related to thisprogramme are recognised directly in the consolidated income statement. At 31 December 2023, 12.4 million (2022:
10.9 million) shares were hedged, resulting in the recognition of a liability of EUR 45 million (2022: EUR 12 million),
dividend income of EUR 8 million (2022: EUR 2 million) and an unrealised result of EUR 34 million (2022: EUR 12 million)
in financial income and expense.

Governance andrisk management

Financialstatements

243

Supplementary
information

Total return equity swap
A sensitivity analysis shows that if the underlying share price changes by 10%, the fair value of the equity derivative
instruments would have changed as follows (in EUR million):
Change in yearend priceEffect on profit
before tax
In EUR million

Share price - 2023

10%

48

Share price - 2023

(10)%

(48)

Share price - 2022

10 %

49

Share price - 2022

(10)%

(49)

Cash-settled share-based payment plan Peet’s
A sensitivity analysis shows that if the underlying share price of Peet’s changes by 10%, this would have changed theshare based payment liability as follows (in EUR million):

Change in yearend priceEffect on profit
before tax
In EUR million

Share price - 2023

10 %

3

Share price - 2023

(10)%

(3)

Share price - 2022

10 %

3

Share price - 2022

(10)%

(3)

JDE Peet's N.V.
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at a glance

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and outlook

Governance andrisk management

Financialstatements

Supplementary
information

244

6.3 CREDIT RISK

6.4 LIQUIDITY RISK

Credit risk arises because a counterparty may fail to perform its obligations. JDE Peet's is exposed to credit risk on
financial instruments such as cash, derivative assets and trade receivables. Concentration of credit risk is avoided bymanaging financial assets across several institutions and sectors.

Liquidity risk arises when a company encounters difficulties to meet commitments associated with liabilities and otherpayment obligations. Such risk may result from inadequate market depth or disruption or refinancing problems.
Liquidity risk is managed by maintaining adequate reserves and banking facilities and by closely monitoring forecasted
and actual cash flows and, where possible, matching the maturity profiles of financial assets and liabilities. Seasonalityof operating cash flows, which includes the payable extension programme (refer to note 4.3 Trade and other payables
for more details) and structured payables, could impact short-term liquidity.

In relation to financial instruments, agreements are entered into with counterparties that meet stringent credit standards(at minimum investment grade), the amount of agreements or contracts it enters into with any party is limited and,
where legally available, executed through master netting agreements. These positions are continuously monitored. In
situations where a counterparty does not meet the minimum credit rating requirement the outstanding exposure withsuch counterparty is closely monitored and maintained at an absolute minimum. While JDE Peet's may be exposed tocredit losses in the event of non-performance by individual counterparties, it has not recognised any losses with thesecounterparties in the past and does not anticipate material losses in the future.
All of JDE Peet's' derivative instruments, with the exception of exchange traded coffee futures, are governed byInternational Swaps and Derivatives Association master agreements. JDE Peet’s' trade receivables are subject to credit
limits, controls and approval procedures. Due to its large geographic base and number of customers, JDE Peet's is not
exposed to material concentrations of credit risk on its trade receivables. Nevertheless, commercial counterparties aremonitored on a continuous basis. The maximum exposure to credit risk resulting from financial activities, without
considering netting agreements and without taking into account any collateral held or other credit enhancements, isequal to the carrying amount of the financial assets.

JDE Peet’s strong risk management framework include continuous liquidity forecasting and planning, with advanced
and punitive stress-testing. At 31 December 2023, the Company's liquidity position remained strong, with total liquidity
of EUR 3.5 billion consisting of a cash position of EUR 2.0 billion (excluding restricted cash) and an undrawn committed
Revolving Credit Facility of EUR 1.5 billion. Note 9.5 discloses the commitments at 31 December 2023.
The following disclosure details JDE Peet’s' remaining contractual maturities for its non-derivative and derivative
financial liabilities with agreed repayment periods. The disclosures have been prepared based on the undiscounted
cash flows of financial liabilities based on the earliest date on which JDE Peet's can be required to pay. The disclosures
include both interest and principal cash flows and were restated for the comparative figures to exclude any offsetting
cash inflows from derivative financial instruments.
To the extent that interest rates are floating, the undiscounted amount is based on the (forward) interest rates at theend of 31 December 2023 and 31 December 2022, respectively.

JDE Peet's N.V.
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Governance andrisk management

At 31 December 2023 (in EUR million):

Financialstatements

245

Supplementary
information

At 31 December 2022 (in EUR million):
Note

Less than
1 year

Between1 and 5 years

Over 5 years

Total

Carrying
amountNote

Financial liabilities

Financial liabilities

Borrowings (excluding
unamortised discounts and costs):

Borrowings (excluding
unamortised discounts and costs):

Less than
1 year

Between1 and 5 years

Over 5 years

Total

Carrying
amountUnsecured notes

5.2

(491)

(2,787)(2,893)(6,171)(5,669)Unsecured notes

5.2

(38)

(1,823)(3,133)(4,994)(4,720)

Lease liabilities

5.2

(79)

(176)

(31)

(286)

(261)

Lease liabilities

5.2

(87)

(175)

(28)

(290)

(256)

Other financing

5.2

(5)

(3)

—

(8)

(8)

Other financing

5.2

(8)

(4)

—

(12)

(14)

Trade and other payables(excluding deferred revenue)

4.3

4.3

Total

(4,196)——(4,196)(4,196)

Trade and other payables(excluding deferred revenue)(4,771)(2,966)(2,924)(10,661)(10,134)

Total(4,675)——(4,675)(4,675)(4,808)(2,002)(3,161)(9,971)(9,665)(90)

Derivative financial liabilities

Derivative financial liabilities
Foreign currency derivatives

6.7

(63)

(13)

—

(76)

(76)

Foreign currency derivatives

6.7

(90)

—

—

(90)

Commodity derivatives

6.7

(1)

(2)

—

(3)

(3)

Commodity derivatives

6.7

(6)

—

—

(6)

(6)

Net interest rate derivatives

6.7

—

—

(47)

(47)

(25)

Total return equity swaps

6.7

(18)

(54)

—

(72)

(43)

Total return equity swap
derivatives(4,922)(2,056)(3,161)(10,139)(9,804)

6.7

(122)

—

—

(122)

(94)

(4,957)(2,981)(2,971)(10,909)(10,332)

Total

Total

JDE Peet's N.V.
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6.5 FAIR VALUE ESTIMATIONThis section explains the judgements and estimates made in determining the fair values of the financial instruments thatare recognised and measured at fair value. To provide an indication about the reliability of the inputs used to determine
fair value, financial instruments are classified into the three levels as prescribed under IFRS. An explanation of eachlevel follows below:• Quoted prices (unadjusted) in active markets for identical assets or liabilities (“Level 1”)• Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly(that is, as prices) or indirectly (that is, derived from prices) (“Level 2”)• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (“Level
3”).
The commodity coffee futures and unsecured notes are valued using Level 1 valuation methods. Substantially all of theother derivative assets and liabilities are valued using Level 2 valuation methods. Share-based payments are valued
using Level 2 and Level 3 valuation methods, for details on this valuation see note 7.1 Share-based payments.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives)is determined by using valuation techniques. These valuation techniques maximise the use of observable market data
where it is available and rely as little as possible on entity-specific estimates. If all significant inputs required to fairly
value an instrument are observable, the instrument is included in Level 2.
Specific valuation techniques used to value financial instruments include:• Quoted market prices or dealer quotes for similar instruments• The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on
observable yield curves• The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance
sheet date, with the resulting value discounted back to present value• The fair value of total return equity swap is calculated based on the share price at the reporting date versus theaverage price for which the shares have been purchased times the volume purchased.

Governance andrisk management

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Supplementary
information

Management believes that the carrying amount of all other financial assets and financial liabilities recognised in thestatement of financial position approximates its fair value. Unsecured notes, initially accounted for at fair value andsubsequently at amortised cost, classify as Level 1, as these instruments are traded with publicly available prices.
Other borrowings, initially accounted for at fair value and subsequently at amortised cost, classify as Level 2, as no
similar instrument is available due to the specific profiles of the instruments.
The following tables present the assets and liabilities of JDE Peet's that are measured at fair value at 31 December
2023 and 31 December 2022, respectively.
At 31 December 2023 (in EUR million):
Note

Level 1

Level 2

Level 3

Total

Interest rate contracts

6.7

—

15

—

15

Foreign exchange contract

6.7

—

56

—

56

6.7

2

—

—

2

2

71

—

73

AssetsCommodity contracts
Total assets

Liabilities
Unsecured notes - EU

5.2

4,088

—

—

4,088

Unsecured notes - US

5.2

1,581

—

—

1,581

Borrowings

5.2

—

246

—

246

Share-based payment liability

9.4

—

—

8

8

Management-owned sharesliability

9.4

—

—

26

26

Interest rate contracts

6.7

—

25

—

25

Foreign exchange contracts

6.7

—

76

—

76

Commodity contracts

6.7

3

—

—

3

Total return equity swaps

6.7

—

94

—

94

5,672

441

34

6,147

Total liabilities

JDE Peet's N.V.
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At 31 December 2022 (in EUR million):
Note

Level 1

Level 2

Level 3

Total

Interest rate contracts

6.7

—

46

—

46

Foreign exchange contracts

6.7

—

22

—

22

Commodity contracts

6.7

4

—

—

4

Total return equity swaps

6.7

—

2

—

2

4

70

—

74

AssetsTotal assets

Liabilities
Unsecured notes - EU

5.2

3,091

—

—

3,091

Unsecured notes - US

5.2

1,629

—

—

1,629

Borrowings

5.2

—

247

—

247

Share-based payment liability

9.4

—

—

17

17

Management-owned sharesliability

9.4

—

—

25

25

Foreign exchange contracts

6.7

—

90

—

90

Commodity contracts

6.7

6

—

—

6

Total return equity swaps

6.7

—

43

—

43

4,726

380

42

5,148

Total liabilities

There were no transfers between different levels during 2023 and 2022.

Financialstatements

247

Supplementary
information

6.6 OFFSETTING FINANCIAL ASSETS AND FINANCIAL LIABILITIESFinancial assets subject to offsetting at 31 December 2023 (in EUR million):
Financial instruments

Financial instruments

Tradereceivables

Non-current
assetsCurrent
assetsNon-current
liabilities

Current
liabilities

Current
assetsGross amount recognised in financial
instruments

16

57

41

157

690

Gross amount offset

—

—

—

—

(127)

Net amount

16

57

41

157

563

(25)

(100)

25

100

—

Related amounts not offset in the statement offinancial positions
Gross financial instruments
Cash collateral – not offset

—

7

—

—

—

Net financial instruments

(25)

(93)

25

100

—

Financial instruments

Tradereceivables

Financial assets subject to offsetting at 31 December 2022 (in EUR million:)
Financial instruments
Non-current
assetsCurrent
assetsNon-current
liabilities

Current
liabilities

Current
assetsGross amount recognised in financial
instruments

46

28

—

139

631

Gross amount offset

—

—

—

—

(101)

Net amount

46

28

—

139

530

Related amounts not offset in the statement offinancial positions
Gross financial instruments

46

(111)

(46)

111

—

Cash collateral – not offset

—

35

—

—

—

Net financial instruments

46

(76)

(46)

111

—

JDE Peet's N.V.
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6.7 DERIVATIVE FINANCIAL INSTRUMENTS
JDE Peet's uses derivative financial instruments, including forward exchange contracts, futures, commodity
arrangements, interest rate swaps, total return equity swaps, net investment hedges and cross currency interest rate
swaps in order to manage exposures from foreign exchange, commodity prices, equity prices and interest rate risks.
The use of these derivative financial instruments intends to reduce the risk or cost and are in accordance with JDE
Peet's financial policy and governance framework. Derivatives are not used for trading or speculative purposes and
JDE Peet's is not a party to leveraged derivatives. Maturity of the foreign exchange and commodity derivatives is
primarily within one year.
JDE Peet's applies the hedge accounting requirements in IFRS 9. Derivatives are initially recognised at fair value
through profit and loss on the date a derivative contract is entered into and are subsequently remeasured at fair value.
The method of recognising the resulting gain or loss from the measurement depends on whether the derivative isdesignated as a hedging instrument and, if so, the nature of the item being hedged. To qualify for hedge accounting,the hedge relationship must meet all of the following requirements:• There is an economic relationship between the hedged item and the hedging instrument• The effect of credit risk does not dominate the value changes that result from that economic relationship• The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item thatthe entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge thatquantity of hedged item.
Hedge accounting is applied to certain derivatives to remove the accounting mismatch between the hedging instrument
and hedged item.
At inception of the transaction, the relationship is documented between hedging instruments and hedged items when
hedge accounting is applied. In addition to this, the risk management objectives and strategy for undertaking various
hedging transactions are documented when hedge accounting is applied. In case hedge accounting is applied, thevalue of the assessment whether the derivatives that are used in hedging transactions are highly effective in offsettingchanges in fair value of the hedge items is performed and documented, both at hedge inception and on an ongoingbasis.

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248

The fair values of the derivative instruments are disclosed in note 6.5 Fair value estimation. Derivatives are classified as
current when the settlement date is within 12 months from the period-end and all other derivatives as non-current in thestatement of financial position. The change in fair value of commodity derivatives is recognised within cost of sales andthe movement of all other derivatives within finance expense in the income statement unless hedge accounting isapplied.
Fair value hedge—The changes in the fair value of derivatives that are designated and qualify as fair value hedges arerecognised in the income statement, together with any changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk.
Cash Flow hedge—Fair value movements of hedging instruments in a designated effective cash flow hedge arerecognised directly in the cash flow hedge reserve (net of tax), a separate component within OCI, net of the foreignexchange and interest effective to the period.
Amounts accumulated in OCI are reclassified to the income statement in the periods when the hedged item affects
profit or loss. Ineffectiveness on cash flow hedges is recognised where the cumulative change in the designatedcomponent value of the hedging instruments exceeds, on an absolute basis, the change in value of the hedged items
attributable to the hedged risk. The gain or loss as a result of ineffectiveness is recognised in the income statement
within Finance expense. When the forecasted transaction that is hedged, results in the recognition of a non-financial
asset (for example, inventory or fixed assets), the gains and losses that were recognised in OCI are transferred from
OCI and included in the initial measurement of the cost of the asset.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any
cumulative gain or loss existing in OCI at that time remains in OCI and is recognised when the forecasted transaction is
ultimately recognised in the income statement. When a forecasted transaction is no longer expected to occur, thecumulative gain or loss that was recognised in OCI is immediately transferred to the income statement within Financeexpense.

JDE Peet's N.V.
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Net investment hedges—JDE Peet’s partly mitigates exposures from its investments in foreign operations by using
both derivative and non- derivative financial instruments as hedging instruments. Hedges of a net investment in foreign
operations are accounted for in a similar way as cash flow hedges. Gains or losses on the hedging instrument relating to
the effective portion of the hedge are recognised in the currency translation reserve (equity component). The gain or loss
relating to the ineffective portion is recognised in the income statement. When a net investment in foreign operation is(partly) disposed of, the amount in the currency translation reserve is (partly) released in the income statement.
At 31 December 2023 the notional amount of the USD notes included in the net investment hedge was USD 500 million(2022: USD 500 million). The translation result of this part of the USD notes was recognised in the currency translation
reserve within Equity and amounted to a gain of EUR 14 million (2022: loss EUR 28 million). In 2023 JDE Peet's partly
hedged their CNY investment in foreign operations with a cross currency swap of CNY 231 million.

Key accounting estimate and judgement—The fair value of financial instruments that are not traded in an
active market (for example, over-the-counter derivatives) is determined by using the Discounted Cash Flowmethod. Judgement is used to select a variety of methods and to make assumptions that are mainly based onmarket conditions existing at the end of each reporting period.

Governance andrisk management

Financialstatements

249

Supplementary
information

Information on the classification and fair values of derivatives in the statement of financial position at 31 December
2023 is as follows (in EUR million):
AssetsLiabilities

Current

Non-current

Current

Non-current– Interest rate contracts—– Foreign exchange contracts

3

15

—

16

—

14

Sub-total

—

3

15

14

16

– Interest rate contracts

—

—

—

9

– Foreign exchange contracts

52

1

48

14

– Commodity contracts

2

—

1

2

– Total return equity swap contracts

—

—

94

—

Sub-total

54

1

143

25

Total

57

16

157

41

Derivatives designated as hedging instruments:

Derivatives not designated as hedging
instruments:

Interest rate
contracts

Foreignexchange
contracts

Commodity
contracts

Total return
equity swap
contracts

Total

Amount of gain (loss) recognised in cost of sales

—

—

70

—

70

Amount of gain (loss) recognised in financeincome/expense

(48)

(95)

—

(53)

(196)

Amount of gain (loss) recognised in selling,
general and administrative expenses

—

—

—

—

—

Derivatives not designated as hedging
instruments:

JDE Peet's N.V.
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Governance andrisk management

Financialstatements

250

Supplementary
information

Information on the classification and fair values of derivatives in the statement of financial position at 31 December
2022 is as follows (in EUR million):
AssetsCurrent

Liabilities
Non-current

Current

Non-current

Derivatives designated as hedging instruments:

Interest rate
contracts

Foreignexchange
contracts

Commodity
contracts

Total return
equity swap
contracts

Total– Interest rate contracts

—

46

—

—

Derivatives not designated as hedging
instruments:– Foreign exchange contracts

—

—

40

—

Amount of gain (loss) recognised in cost of sales

—

—

(16)

—

(16)

Sub-total

—

46

40

—

Amount of gain (loss) recognised in financeincome/expense

159

206

—

(13)

352

– Foreign exchange contracts

22

—

50

—

– Commodity contracts

4

—

6

—

Amount of gain (loss) recognised in selling,
general and administrative expenses

—

—

—

—

—

– Total return equity swap contracts

2

—

43

—

Sub-total

28

—

99

—

Total

28

46

139

—

Derivatives not designated as hedging instruments:

JDE Peet's N.V.
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7. GOVERNANCE
7.1 SHARE-BASED PAYMENTS
The plans partially qualify as equity-settled and partially as cash-settled.
Equity-settled—JDE Peet's operates a number of equity-settled share-based payment plans, under which it receives
services from directors and employees as consideration for equity instruments. For these plans, JDE Peet's does nothave a present obligation to settle in cash or an obligation to repurchase the equity instruments.
The total amount to be expensed for services received is determined by reference to the grant date fair value of theshare-based payment award made. For this purpose, analyses are made whether the price paid by a participant, if any,
is in line with the market price of the underlying shares at the grant date. If a positive difference exists between (i) the
actual market value of the shares and (ii) the purchase price; this results in a fair value to be recognised as a sharebased payment expense.
The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on theestimated number of shares that will eventually vest, with a corresponding credit to the share-based payment reserve
within Equity. Compensation expense is recognised on a straight-line basis from the beginning of the service period,
even when the grant date is subsequent to the service commencement date. During the period between service
commencement date and grant date, the share-based payment expense recognised is based on an estimated grant
date fair value of the award. Once the grant date has been established, the estimated fair value is revised so that theexpense recognised is based on the actual grant date fair value of the equity instruments granted. Except forinvestments in the Executive Ownership Plan (the Company) as of 2023, the only vesting condition for all other plans
and investments is that the participant should still provide services for JDE Peet's.
When equity-settled share-based payment plans are modified to cash-settled, the share-based payment reserve isreclassified as a liability, using the share price at the date of the modification. The difference between the share price at
the grant date and the fair value at the modification date for the pro-rata period since the grant date is recognised inretained earnings.
Cash-settled—If JDE Peet's has an obligation to settle in cash or an obligation to repurchase equity instruments
awarded to directors or employees, the arrangement is classified as a cash-settled share-based payment arrangement.

Governance andrisk management

Financialstatements

Supplementary
information251

For such an arrangement, the costs are recognised on a straight-line basis over the vesting period, whereby the fairvalue of the liability is remeasured at each reporting date and at the date of settlement, with any changes in fair value
recognised in the income statement.
When cash-settled share-based payment plans are modified to equity-settled, the liability is reclassified to the sharebased payment reserve within equity using the share price at the date of the modification. This share price is assumed
to be the updated grant date fair value and used in determining the expense over the remaining vesting period.

Share-based payment expenses are recognised based on a number of estimated assumptions regarding forfeituresand measurement of the fair value share prices. A change in these assumptions may result in changes in the sharebased payment reserve or liability in the future.

Description and amendments of Plans under which Awards were granted to Employees—Total share-based payment
expenses were recognised of EUR 43.3 million in fiscal year 2023 (2022: EUR 33.4 million). The total expense, which
was recognised in selling, general and administrative expenses for EUR 40.5 million (2022: 37.4 million) and a cost ofEUR 2.8 million (2022: benefit of EUR 4.0 million) was recognised with Finance expense, consisted of:• EUR 25.0 million (2022: EUR 16.2 million) related to the Company’s Long-Term Incentive Share Plan and Executive
Ownership Plan
• EUR 7.1 million (2022: EUR 8.7 million) related to JDE’s Long-Term Incentive Share Plan, Share Purchase Plan
Senior Management and Executive Ownership Plan
• EUR 11.2 million (2022: EUR 8.5 million) related to Peet’s Long-Term Incentive Share plan, Executive Ownership
Plan and Management Stock.

Long-Term Incentive Share Plan (the Company)
A long-term incentive plan was established, under which Restricted Stock Units ("RSUs") were awarded to executive
and non-executive board members and key employees of the Company. Each RSU entitles the relevant participant toreceive certain number of shares in the Company based on the value at vesting of the RSU. A modification was made in
September 2023, such that for certain participants in jurisdictions where vesting in shares poses regulatory challenges,
vestings may be settled in cash. For all other participants, there is no present obligation to settle in cash or to
repurchase, and subsequently these RSU awards are accounted for as equity-settled. Grants made since December
2021 have a vesting period of three years and grants prior to this date have a vesting period of five years.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

252

Executive Ownership Plan (the Company)

Share Purchase Plan Senior Management (JDE)An Executive Ownership Plan was established, under which certain members of the Executive Committee of theCompany were given the opportunity to invest in the Company through an indirect interest in JDEP Holding B.V. The
investments are matched 1-for-1 and the costs are recognised over a five-year period or longer based on the service
commencement date of the employee. There is no present obligation to settle in cash or to repurchase, andsubsequently the RSU awards are accounted for as equity-settled. For investments made in 2023, the investment
match is additionally subject to the achievement of performance conditions linked to the Company's ESG
commitments.

Senior Management was given the opportunity to initially invest in JDE Certificates through a Foundation. For every
three shares held for a period of at least five years, the participant will be entitled to receive one RSU. Each RSU
entitles the relevant participant to receive the value of a JDE share, settled in an equivalent value in shares of theCompany. This plan is governed under the same rules as the Long-Term Incentive Plan (JDE). During 2023, this plan
was closed for new investments and replaced with the Share Purchase Plan Senior Management (the Company).

Share Purchase Plan Senior Management (the Company)
In March 2023, a plan was introduced where Senior Management is given the opportunity to invest in shares of theCompany, as a replacement of the Share Purchase Plan Senior Management (JDE). For every three shares purchasedby the participant and held for a period of at least three years, the participant will be entitled to receive one RSU. Each
RSU entitles the relevant participant to receive a share of the Company. This plan is governed under the same rules as
the Long-Term Incentive Plan (the Company). As there is no present obligation to settle in cash or purchase the shares,
this plan classified as equity-settled.

Long-Term Incentive Share Plan (JDE)A Long-Term Incentive Share Plan was established, under which RSUs were awarded to key employees of JDE. Each
RSU entitles the relevant participant to receive certain number of shares in the Company based on the value of the RSU
at vesting. A modification was made in September 2023, such that for certain participants in jurisdictions where vestingin shares poses regulatory challenges, vestings may be settled in cash. For all other participants, there is no present
obligation to settle in cash or to repurchase, and subsequently these RSU awards are accounted for as equity-settled.
The vesting period of all grants under this plan is five years. The last grants under this plan were made in September
2021.

Long-Term Incentive Share Plan (Peet’s)
A Long-Term Incentive Share Plan was established, under which RSUs are awarded to key employees of Peet's. Each
RSU entitles the relevant participant to receive certain number of shares based on the value at vesting of the RSU. This
plan and its Options (that become exercisable subject to vesting conditions) vest in either Peet's shares or shares of
the Company and partly qualifies as equity-settled and party as cash-settled. No amendments were made to this plan.

Executive Ownership Plan (Peet’s)
An Executive Ownership Plan was established, under which certain members of Senior Management of Peet's are
given the opportunity to invest in Peet's through its immediate parent Peet's Inc. (“Peet’s Inc.”). The investments arematched 1-for-1 and the costs recognised over a period of four and a half years or longer, based on the service
commencement date of the employee. The matching of the awards vest in either Peet's shares or shares of theCompany and partly qualifies as equity-settled and party as cash-settled. No amendments were made to this plan.

Management Stock (Peet’s)
Management of Peet’s has the opportunity to invest in Peet’s shares directly or owns Peet’s shares as a result ofvesting of RSUs or Options. This plan and its Options (that become exercisable subject to vesting conditions) vest ineither Peet's shares or shares of the Company and partly qualifies as equity-settled and party as cash-settled. No
amendments were made to this plan.

Executive Ownership Plan (JDE)

Summary of Awards Granted by Plan

An Executive Ownership plan was established, under which certain members of the Executive Committee of JDE were
given the opportunity to invest in JDE through an indirect share ownership in JDE Holdings Minority B.V. The
investments are matched 1-for-1 and the costs recognised over a five-year period or longer based on the service
commencement date of the employee. As there is no present obligation to settle in cash or purchase the shares, the
EOP JDE is classified as equity-settled. No amendments were made to this plan.

Long-Term Incentive Share Plan (the Company)
Regular RSUs were granted to eligible employees in March and September 2023 and March, September andDecember 2022.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

The value of RSUs is based on the Company's share price. This resulted in a grant date fair value of EUR 18.9 million in
2023 (2022: EUR 20.8 million) to be recognised as a share-based payment expense over the applicable vesting period,
taking into account an estimated forfeiture rate between 0% and 33% of awards that will eventually vest.
The weighted-average grant date fair value at 31 December 2023 of the outstanding RSU share awards was EUR 28.02(2022: EUR 28.85).

Financialstatements

253

Supplementary
information

Executive Ownership Plan (the Company)
New investments equalled a grant date fair value of EUR 4.2 million in 2023 (2022: EUR 2.0 million). The investments
during 2022 are recognised as a share-based payment expense over three years, where all other investments are
generally recognised over a five-year period.
The weighted-average grant date fair value at 31 December 2023 of the outstanding share awards was EUR 32.76(2022: EUR 33.58).

Details of the number of RSU share awards outstanding are as follows:
Details of the number of RSU share awards outstanding are as follows:
2023
Cash-settled2023
Equity-settled2022
Cash-settled2022
Equity-settled

Granted

—15,181

2,065,221
1,040,906——

1,019,081
1,092,324

Modified

109,533(109,533)——

Forfeited—(109,598)—(46,184)

Vested—(21,701)——

124,7142,865,295—

2,065,221

Balance at 31 December

2022

1,238,800

1,166,598

In shares in the Company

In shares of the Company
Balance at 1 January

2023

Share Purchase Plan Senior Management (the Company)
A total grant date fair value of EUR 0.7 million will be recognised as a share-based payment expense over the vesting
period. For the awards made under this plan, a forfeiture rate between 0% and 33% was used when estimating thenumber of awards that will eventually vest.
The weighted-average grant date fair value at 31 December 2023 of the outstanding RSU share awards was
EUR 27.47.

Balance at 1 January
GrantedBalance at 31 December

159,397

72,202

1,398,197

1,238,800

The Company's Executive Committee members financed their investments through own funds, loans issued by JDE
Peet's, or a combination of own funds and loans. The total amount of loans provided to the Executive Committee
members with respect to the share-based payment plans is disclosed in note 7.2 Related party transactions.
Long-Term Incentive Share Plan (JDE)As the RSUs will be settled in shares in the Company based upon the value of JDE, the fair value of an RSU award
equals the estimated share value of JDE of an ordinary share at the grant date. No grants were awarded in 2023 (2022:
EUR (0.2) million). An estimated forfeiture rate between 0% and 33% has been applied of awards that will eventuallyvest.
The latest available conversion ratio applicable to the number of JDE RSUs to be converted in shares in the Company
is: 43.78.

Details of the number of RSU share awards outstanding are as follows:2023
In shares of the Company
Granted40,225

Balance as of 31 December

40,225

The weighted-average grant date fair value at 31 December 2023 of the outstanding RSU share awards was EUR 1,539(2022: EUR 1,546).

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Details of the number of RSU share awards outstanding are as follows:
2023
Cash-settled2023
Equity-settled2022
Cash-settled2022
Equity-settled

Balance at 1 January

519

20,740519

27,022Granted

—

—

—

(197)

Modified

841

(841)

—

—

Forfeited—(2,404)—(3,033)

Vested(648)(3,350)—(3,052)

Balance at 31 December

712

14,145519

20,740In shares of JDE

Executive Ownership Plan (JDE)
During 2023 and 2022 no new investments were made. The latest available conversion ratio applicable to the number
of JDE RSUs to be converted in shares in the Company is: 43.78.

Financialstatements

Share Purchase Plan Senior Management (JDE)
During 2023 no new awards were granted. An estimated forfeiture rate between 0% and 33% has been applied ofawards that will eventually vest.
The latest available conversion ratio applicable to the number of JDE RSUs to be converted in shares in the Company
is: 43.78.
The weighted-average grant date fair value at 31 December 2023 of the outstanding RSU share awards was EUR 1,434(2022: EUR 1,406).
Details of the number of RSU share awards outstanding are as follows:

Details of the number of share awards outstanding are as follows:
2023

2022

Balance at 1 January

9,731

9,731

Forfeited(1,893)—

Vested(1,942)—

Balance at 31 December

5,896

9,731

2023
Cash-settled2023
Equity-settled2022
Cash-settled2022
Equity-settled

—

1,823

—

2,063
44

In shares of JDE
Balance at 1 January

The weighted-average grant date fair value at 31 December 2023 of the outstanding share awards was EUR 1,471(2022: EUR 1,456).

254

Supplementary
information

Granted———Modified

10

(10)

—

—

Forfeited

—

(19)

—

(208)

Vested

—

(61)

—

(76)

Balance at 31 December

10

1,733

—

1,823

In shares of the JDE

Long-Term Incentive Share Plan (Peet’s)
Regular RSUs were granted to eligible employees in March and September 2023 and 2022. The vesting dates of thesegrants are in March and September 2026 and 2025, respectively.
As described above, this plan partly qualifies as cash-settled and partly as equity-settled.

Participants financed their investment through own funds, loans issued by JDE Peet's, or a combination of own funds
and loans. The total amount of loans provided to the Executive Committee members with respect to the share-based
payment plans is disclosed in note 7.2 Related party transactions.

With respect to the equity settled plans, a grant date fair value of EUR 5 million in 2023 (2022: EUR 8 million) was
recognised as a share-based payment expense over the applicable vesting period of generally five years, taking into
account an estimated forfeiture rate between 6% and 15% of awards that will eventually vest.
The latest available conversion ratio applicable to the number of Peet’s RSUs to be converted in shares in the
Company is: 5.78 with respect to the equity-settled plans.

JDE Peet's N.V.
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JDE Peet’s
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Governance andrisk management

The weighted-average grant date fair value at 31 December 2023 of the outstanding RSU share awards was EUR 141
per share (2022: EUR 145 per share).
The weighted-average exercise price of the options at 31 December 2023 is EUR 91 per share (2022: EUR 83 pershare) with a weighted-average remaining contractual life of 2.9 years (2022: 3.5 years).

Financialstatements

255

Supplementary
information

Executive Ownership Plan (Peet’s)
Eligible employees who made a pre-established minimum investment in Peet’s Inc. under the EOP were eligible toreceive a matching award grant of RSUs which vest in a similar manner to the RSU awards granted under the LTIP.
These matching awards are valued and expensed in the same manner as other RSU grants.
As described above, this plan partly qualifies as cash-settled and partly as equity-settled.

Details of the number of RSU share awards outstanding are as follows (after restating the comparative information):2023
Cash-settled2023
Equitysettled2022
Cash-settled
restated

2022
Equitysettled
restated

59,188181,207

83,640167,573

Granted

—35,601—54,364

Modified(19,352)

19,352——

Vested(37,724)(60,218)(18,817)(7,054)Forfeited(317)(46,751)(5,635)(33,676)

Balance at 31 December

1,795

129,191

59,188181,207

With respect to the equity-settled plans, a grant date fair value of EUR 0.8 million (2022: EUR 1.6 million) was
recognised as a share-based payment expense over the applicable vesting period of generally five years, taking into
account an estimated forfeiture rate between 6.0% and 14.6% of awards that will eventually vest.

In shares of Peet's
Balance at 1 January2023
Cash-settled2022
Cash-settled
restated

2022
Equitysettled
restated2023
Cash-settled2023
Equitysettled2022
Cash-settled
restated

2022
Equitysettled
restated

In shares of Peet's

In shares of Peet's
Balance at 1 January

The weighted-average grant date fair value at 31 December 2023 of the outstanding RSU share awards was EUR 141
per share (2022: EUR 138 per share).
Details of the number of RSU share awards outstanding are as follows regarding the EOP (after restating thecomparative information):

Details of the number of options outstanding are as follows (after restating the comparative information):
2023
Equitysettled

The latest available conversion ratio applicable to the number of Peet’s Options to be converted in shares in the
Company is: 5.78 with respect to the equity-settled plans.

66,93912,26380,222

14,999Balance at 1 January

33,808

12,117

61,994

7,049

—

6,008

—

23,311(12,247)

Modified(23,195)

23,195——GrantedExercised(10,514)(26,234)(11,504)(2,196)

Vested(1,876)—(21,983)

Forfeited

(341)

—

(1,779)(540)

Forfeited(1,781)—(6,203)(5,996)32,8899,224

66,93912,263

Balance at 31 December

30,151

18,12533,808

12,117

Balance at 31 December

All options are exercisable at 31 December 2023 (2022: 78,654).
At 31 December 2023, a liability of EUR 8 million (2022: EUR 17 million) was recognised following the modification to
cash-settled plans, including a part of the EOP plan as described below.

Eligible employees were provided the option to finance a portion of their investment under the EOP with a loan from
Peet’s Inc. All loans outstanding as of 31 December 2023 are limited recourse loans which may be prepaid byparticipants at any time. The total amount of loans provided to the Executive Committee members with respect to theshare-based payment plans is disclosed in note 7.2 Related party transactions.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
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Management Stock (Peet's)
Management of Peet’s has the opportunity to invest in Peet’s shares directly or received Peet’s shares due to thevesting of their RSUs. The value of these investments is classified as a liability as Peet's has the obligation to buy backthese investments and amounted to EUR 26 million at 31 December 2023 (2022: EUR 26 million). The number ofoutstanding Management Stock that qualifies as a liability was 153,635 at 31 December 2023 (2022: 162,856).
Management of Peet’s has the opportunity to invest in shares in the Company directly or received such sharesfollowing the vesting of their RSUs. The value of these investments is classified as equity as the Company does nothave an obligation to buy back these investments. This is valued against the fair value of the share upon the issuanceof the shares. The number of outstanding Management Stock that is classified as equity is 23,972 at 31 December
2023 (2022: 30,181).

Governance andrisk management

Financialstatements

256

Supplementary
information

7.2 RELATED PARTIES
Key management compensation
The compensation related to key management and non-executive Directors of JDE Peet's for employee services is asfollows (in EUR million):
2023

2022

Salaries

16

14

Share-based payment compensation83

24

26

Other, including pensions

1

2

Total

41

42

Executive Director

129Non-executive Directors (the Board)3

2

The definition of key management in this note differs from the definition as applied in the Remuneration Report as thisdefinition includes senior management whilst the Remuneration Report only applies to the executive and non-executive
Directors. The Remuneration Report is presented on page 179.
L2M acquisition—On 12 July 2022, JDE Peet's acquired L2M where Denis Hennequin, Non-executive Director of theCompany, is one of the partners of the previous shareholder FrenchFood Capital. Denis Hennequin played no role in
the identification of L2M as a potential acquisition target for the Company, nor did he play a role in the negotiation of
the acquisition or otherwise. For further details, refer to note 3.1 Business combinations.
Shares in JDE Peet's—At 31 December 2023, Olivier Goudet held 851,849, Fabien Simon 31,013, Peter Harf 664,412,
Joachim Creus 35,000, Carolyn Adams 943 and Tatiana Efremova 444 ordinary shares in JDE Peet's. In addition certain
non-executive Directors have indirect interests in JDE Peet's through shareholdings in the parent companies.
Contribution by parent & distribution to parent—During 2023 no contributions were made by or distributed to theshareholders other than dividends.

83

A duplication of a part of the share-based payment expense was identified and corrected in the comparative period.

JDE Peet's N.V.
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Financialstatements

Supplementary
information

257

Share-based payments—As described in note 7.1, directors and employees of JDE Peet's participate in share-based
payment plans. The costs related to these plans are reflected as part of the selling, general and administrative
expenses in the income statement.

Transactions between Peet's and Keurig Dr Pepper—There were transactions between Peet's and Keurig Dr Pepper(an entity ultimately partially owned by JAB) as part of the normal course of business, such as the purchase of coffee by
Keurig Dr Pepper and subsequently purchase of K-cups by Peet’s.

Trading transactions

Transactions between Peet's and Caribou—There were transactions between the Peet's and Caribou (an entity
ultimately owned by JAB) as part of the normal course of business, such as sale of coffee from Peet’s to Caribou.
On 18 January 2024, JDE Peet’s announced it has signed a long-term global license agreement to manufacture, market
and sell Caribou consumer and foodservice coffee products, excluding Caribou coffeehouses. The transaction is
expected to close in the first quarter of 2024. In line with the Company’s Related Party Transaction Policy, the JAB
affiliated members of the Board did not participate in the decision making. Reference is made to note 9.6 Subsequent
events.

During the year, JDE Peet's entities entered into the following transactions with related parties outside the group of JDE
Peet's (in EUR million):
Sales to related parties

Purchases from related parties

2023

2022

2023

2022

Keurig Dr Pepper

5

4

90

92

Caribou83

—

—

34

34

Mondelēz Group84

—

—

44

38

Total

5

4

167

164

Transactions with various pension funds—JDE Peet's has several transactions with the pension funds as further
disclosed in note 9.1 Post-employment benefits. All transactions are related to payments to and/or to fund the pension
funds.

The following amounts were outstanding from/to related parties at reporting date (in EUR million):
Owed by related parties

Owed to related parties

2023

2022

2023

Keurig Dr Pepper

1

1

41

2022
43

Caribou

—

—

4

42

Mondelēz Group

—

—

8

8

Total

1

1

53

93

Sales of goods to related parties were made at JDE Peet's' usual list prices, less usual discount provided to customers.
Purchases were made at market price discounted to reflect the quantity of goods purchased and the relationships
between the parties. The amounts outstanding are unsecured and will be settled in cash. No guarantees were given or
received. No provisions were made for doubtful debts in respect of the amounts owed by related parties.
Transactions with Mondelēz International Inc. Group—There were transactions between JDE Peet's and Mondelēz
Group as part of the normal course of business, such as rental of office space.
84

Some sales and purchase transactions had been erroneously identified as related parties transactions and were therefore corrected in the comparative period.

Transactions with shareholders—In February 2022, Olivier Goudet, Non-executive Director of the Company, exercised
his put option on shares in Peet's Coffee, Inc., in exchange for shares in the Company. This transaction happened atfair market value and resulted in the issuance of 751,849 ordinary shares. In the financial statements, his shares at
Peet's Coffee,Inc. were recognised as a management-owned shares liability and the transaction resulted in a decreaseof this liability for an amount of EUR 23 million.

Indemnification with Mondelēz
On 5 May 2020, JDE Peet's received notice of a potential indemnification claim pursuant to the JDE Global Contribution
Agreement, following on-site inspections undertaken by the European Commission at certain of Mondelēz
International's European offices as part of an investigation into an alleged infringement of European Union competition
law. On 28 January 2021, the European Commission announced it had taken the procedural step to open a formal
antitrust investigation into Mondelēz International’s conduct in relation to several product categories including coffee.
The investigation concerns Mondelēz International and does not involve JDE Peet's. On 31 January 2023, Mondelēz
disclosed that it is engaged in discussions with the European Commission in an effort to reach a negotiated,
proportionate resolution to this matter and that it recognised a provision in relation to the investigation by the European
Commission.

JDE Peet's N.V.
Annual Report 2023

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JDE Peet’s has not been notified of any actual claim by Mondelēz, and the current assessment of any potential
indemnification obligations of JDE Peet’s in this respect remains uncertain and in all events would not be expected tobe material.

Governance andrisk management

Financialstatements

Supplementary
information258

8. INCOME TAXES
Income tax expense for the period comprises of current and deferred tax. Current and deferred tax is recognised in theincome statement, except when it relates to a business combination or for items recognised in OCI or directly in Equity.

Loans to related parties
Loans to key management—As described in note 7.1 Share-based payments, loans were granted to members of theexecutive committee for the sole purpose of participating in the Executive Ownership Plans of JDE Peet's. The loans
bear interest at 3% and early repayment is allowed. The total amount of loans outstanding to Executive Committee
members amounted to EUR 19 million at 31 December 2023 (2022: EUR 18 million).

Current income tax—Current income tax is the expected income tax payable or receivable in respect of taxable
income or loss for the current year in the countries where JDE Peet's operates and generates taxable income, using the
tax rates enacted or substantially enacted at the reporting date, and any adjustments thereto in respect of previous
years.

Loans from related parties

Deferred income tax—Deferred income tax is a tax payable or receivable in the future and is recognised on temporary
differences arising from differences between the tax bases of assets and liabilities and their carrying amounts, unused
tax losses and unused tax credits.

At 31 December 2023, the Company had no outstanding loans with related parties.

Fiscal unity
Certain subsidiaries of the Company were included with affiliates not part of JDE Peet's in a combined group tax filing.
The Company, together with certain of its Dutch subsidiaries, is part of a tax grouping for Dutch corporate income tax
purposes.

Deferred income tax is not recognised on temporary differences related to: (i) the initial recognition of an asset or
liability in a transaction, other than a business combination, that at the time of the transaction affects neither accounting
nor taxable profit or loss, (ii) the investments in subsidiaries, branches and associates, and interests in joint ventures, tothe extent that JDE Peet's is able to control the timing and reversal of the temporary differences and it is probable thatthey will not reverse in the foreseeable future, and (iii) the initial recognition of goodwill.
Deferred income tax is measured at the tax rates that are expected to be applied to temporary differences when they
reverse, based on the laws that have been enacted or substantially enacted at the reporting date.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against
which they can be utilised. The criteria that are considered in assessing the probability that sufficient taxable profit will
be available include: (i) the existence of taxable temporary differences that relate to the same taxation authority and thesame taxable entity, (ii) expected future taxable profits and (iii) tax planning opportunities. In case a history of recent
losses is present, it is considered whether convincing other evidence exists, such as the nature of the (historical) losses
and changes in activities to support recognising the deferred tax asset.

JDE Peet's N.V.
Annual Report 2023

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Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by thesame taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle
the balances on a net basis.
JDE Peet's applies the exception to recognizing and disclosing information about deferred tax assets and liabilities
related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023. As a result, JDE
Peet's neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income
taxes.
Uncertain tax treatments—An uncertain income tax treatment is any tax treatment applied by an entity where there is
uncertainty over whether that treatment will be accepted by the taxation authority. Such uncertainty can relate to all
aspects of income tax accounting, including taxable profit or loss, the tax bases of assets and liabilities, tax losses, tax
credits and tax rates. If JDE Peet's concludes it is probable that the taxation authority will not accept an uncertain tax
treatment, a liability is recognised to reflect the effect of the uncertainty in determining the related taxable profit (taxloss), tax bases, unused tax losses, unused tax credits or tax rates, to the extent that a reliable estimate can be made.
If JDE Peet's concludes it is possible but not probable that a taxation authority will not accept an uncertain tax
treatment, JDE Peet's shall determine whether to disclose the potential effect of the uncertainty as a tax-related
contingency, see note 9.5.

Key accounting estimate and judgement—JDE Peet's is subject to taxation in the many countries in which it
operates. The tax legislation of these countries differs, is often complex and is subject to interpretation by
management and the government authorities. These matters of judgement give rise to the need to create
provisions for income tax payments that may arise in future years with respect to transactions alreadyundertaken. Judgment is made about whether each uncertainty should be considered independently or whether
some uncertainties can be considered together, when recognising and measuring provision for income tax
payments. The income tax provision is estimated based on either of the following methods, depending on which
method JDE Peet's expects to better predict the resolution of the uncertainty: (i) the most likely amount - thesingle most likely amount in a range of possible outcomes, or (ii) the expected value - the sum of the probabilityweighted amounts in a range of possible outcomes.

Governance andrisk management

Financialstatements

259

Supplementary
information

If new information becomes available, this may cause JDE Peet's to change its judgement regarding the adequacy of
existing income tax liabilities; such changes to income tax liabilities will impact the income tax expense in the periodthat such determination is made.
For the utilisation of tax losses and recognition of other deferred tax assets, management uses judgement to assess
whether there will be sufficient future taxable profits to utilise such deferred tax assets.
Other—In December 2022, formal approval was given to the adoption of the EU Pillar Two Directive under which
member states need to enact global minimum taxation rules before 31 December 2023. Based on the annual turnoverthreshold, JDE Peet’s falls within the scope of these rules (i.e. Pillar Two). In December 2023, Pillar Two income taxes
legislation was enacted in the Netherlands. Therefore, JDE Peet's N.V. as parent company will be required to pay topup tax in the Netherlands on profits of its subsidiaries that are taxed at an effective tax rate of less than 15% – and do
not meet the transitional safe harbour tests – effective for the financial year beginning 1 January 2024.
We have performed an initial impact assessment based on the best interpretation of technical guidance as issued todate. The assessment and further clarification of applicable rules and guidance will be further fine-tuned and validated
in 2024. Based on this assessment considering the most recent information available regarding the financial
performance of the constituent entities within JDE Peet's, we expect the Pillar Two effective tax rates in most of thejurisdictions in which JDE Peet's operates to be above 15%. However, there are a limited number of jurisdictions where
the transitional safe harbour relief does not apply, and the Pillar Two effective tax rate is close to 15%. JDE Peet's does
not expect a material exposure to Pillar Two income taxes in those jurisdictions.
Income Tax Expense
The components of the income tax expense are as follows (in EUR million):
2023

2022

Current tax (expense) / benefit

(220)

(219)

Deferred tax (expense) / benefit

47

(38)

(173)

(257)

Total income tax expense

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Reconciliation of the effective tax rate (in EUR million):
2023
Profit before income taxes
Income tax using JDE Peet's calculated
weighted-average statutory income tax (a)85

537

2022

Financialstatements

260

Supplementary
information

expire (increasing the tax expense with EUR 13 million, increasing effect of 2.4%) and (iv) tax reserves and prior year
related tax adjustments (increasing tax expense with EUR 4 million, increasing effect of 0.7%).

1,018

Tax

%

Tax

%

(120)

22.3 %(224)

22.0 %

Differences between computed rate of tax andeffective tax rate due to:

The decreasing effect on the tax expense in 2023 is mainly due to tax exempt and non-taxable income (decreasing thetax expense with EUR 11 million, decreasing effect of 2.0%).
In 2022, the JDE Peet’s' effective income tax rate of 25.2% (tax expense of EUR 257 million) was higher (3.2%, tax
expense of EUR 33 million) than the calculated weighted-average statutory income tax rate of 22.0% (tax expense of
EUR 224 million) due to various items increasing the tax expense (in total EUR 48 million with increasing effect of4.7%), which are offset by the various items decreasing the tax expense (in total EUR 15 million with decreasing effectof 1.5%).

– Tax exempt and non-taxable income

11(2.0) %

13(1.3) %– Non-deductible expenses

(34)

6.3 %

(17)

1.7 %

– Repatriation taxation of earnings andwithholding

(8)

1.5 %

(12)

1.2 %

– Recognition/(non-recognition) of deferred tax
assets

(13)

2.4 %

(15)

1.5 %

(4)

0.7 %

2

(0.2) %

(5)

1.0 %

(4)

0.3 %

Deferred income tax assets

49

35

(173)

32.2 %(257)

25.2 %

Deferred income tax liabilities(1,226)(1,265)Net deferred income tax(1,177)(1,230)– Tax reserves and prior year related tax
adjustments– Other taxes
Effective tax rate

Deferred Income Tax Assets and Liabilities
The analysis of the deferred income tax assets and liabilities is as follows (in EUR million):
2023

2022

In 2023, the JDE Peet’s' effective income tax rate of 32.2% (tax expense of EUR 173 million) was higher (9.9%, tax
expense of EUR 53 million) than the calculated weighted-average statutory income tax rate of 22.3% (tax expense of
EUR 120 million) due to various items increasing the tax expense (in total EUR 64 million with increasing effect of
11.9%), which are partly offset by various tax exempt and non-taxable items decreasing the tax expense (in total
EUR 11.0 million with decreasing effect of 2.0%).
Items with increasing effect on tax expense in 2023 mainly consist of the following: (i) non-deductible expenses(increasing the tax expense with EUR 34 million, increasing effect of 6.3%), such as long-term incentive costs andchange in fair value of derivative financial instruments, (ii) irrecoverable withholding taxes paid by subsidiaries on
dividends and on other cross-border payments such as royalties and service fees, which cannot be offset against othertaxes due (increasing the tax expense with EUR 8 million, increasing effect of 1.5%), (iii) non-recognition of deferred tax
assets for tax losses, for which we do not expect sufficient future taxable profits to utilise such losses before they85

JDE Peet's' calculated weighted-average statutory income tax is the average of the standard rate of tax (including the impact of tax rate attributes) applicable in the countries in which JDE Peet's operates, weighted by the amount of underlying profit before taxation generated in each of those countries. For thisreason, the rate may vary from year to year according to the mix of profit and related tax rates.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Strategy andvalue creation

Introduction

Performance review
and outlook

Governance andrisk management

Deferred tax assets and deferred tax liabilities are attributable to the following items (in EUR million):

Deferred tax
assetsDeferred tax
liabilities

2023

2022

Net deferred
tax asset/(liability)

Net deferred
tax asset/(liability)

Deferred tax
assetsDeferred tax
liabilities

Property, plant and equipment

4

(81)

(77)

—

(98)

(98)

Goodwill and other intangible
assets11(1,301)(1,290)12(1,318)(1,306)

Other non-current financial
assets

112

(1)

111

121

(3)

118

Retirement benefit asset/
obligations

33

(108)

(75)

28

(103)

(75)

Share-based payments

4

—

4

7

—

7

Borrowings

40

—

40

39

—

39

Derivative financial instruments

3

—

3

8

—

8

Provisions and other

18

1

19

15

(5)

10

Trade and other receivables/
payables

39

—

39

40

—

40

Inventories

10

(3)

7

8

(1)

7

Tax on repatriation of earnings

—

(49)

(49)

—

(61)

(61)

Tax loss carry forwards

91

—

91

81

—

81

Subtotal

365(1,542)(1,177)359(1,589)(1,230)

Offset of deferred tax positions

(316)

316

—

(324)

324

—

49

(1,226)(1,177)35(1,265)(1,230)Net deferred tax asset/(liability)

The tax effect relating to temporary differences associated with undistributed earnings of subsidiaries for which
deferred tax liabilities have not been recognised amounts to EUR 50 million (2022: EUR 35 million). This is because JDE
Peet’s is able to control the timing of the reversal of the temporary differences, and it is probable that such differences
will not reverse in the foreseeable future.

Financialstatements

Supplementary
information

261

Movement in deferred tax balances during the year
In 2023, the net deferred tax liability position decreased with EUR 53 million from a net deferred tax liability of
EUR 1,230 million in 2022 to a net deferred tax liability of EUR 1,177 million in 2023. This decrease was the result of (i)an decrease of deferred tax liabilities (decreasing the net deferred tax liability with EUR 39 million) and (ii) a increase ofdeferred tax assets (decreasing the net deferred tax liability with EUR 14 million). The decrease of net deferred tax
liability mainly resulted from (a) decrease of deferred tax liabilities resulting from the impairment of an intangible asset(decreasing the net deferred tax liability with EUR 39 million), (b) decrease of deferred tax liabilities in relation toestimated tax on repatriation of earnings (decreasing the net deferred tax liability with EUR 12 million) and (c) the
increase of deferred tax assets for tax loss carry forwards (decreasing of net deferred tax liability with EUR 10 million),
partly offset by recurring changes in other temporary differences (increasing of net deferred tax liability with EUR 10
million).
In 2022, the net deferred tax liability position increased with EUR 68 million from a net deferred tax liability of
EUR 1,162 million in 2021 to a net deferred tax liability of EUR 1,230 million in 2022. The increase was the result of (i) an
increase of deferred tax liabilities (increasing the net deferred tax liability with EUR 37 million), (ii) a decrease of deferred
tax assets for various temporary differences (increasing the net deferred tax liability with EUR 7 million), partially offsetby (iii) a decrease of recognised deferred tax assets for tax loss carry forwards (increasing of net deferred tax liability
with EUR 24 million).
Changes in the application of hyperinflationary accounting have been booked directly through equity, resulting in an
increase of the net deferred tax liability with EUR 4 million in 2023 and EUR 7 million in 2022.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

262

Supplementary
information

The movements during 2023 and 2022 are as follows (in EUR million):(Charged)
Balance at 31
Credited to theDecember 2022 income statement
Property, plant and equipment(Charged)
Credited directly
to othercomprehensive
income(Charged)
Credited directly
to equity

Currencytranslation

Balance at 31
December 2023

(98)

19

—

2

—

(77)

Goodwill and other intangible assets(1,306)

13

—

(2)

5

(1,290)

Other non-current financial assets

118

(7)

—

—

—

111

Retirement benefit asset/obligations

(75)

(7)

9

—

(2)

(75)

Share-based payments

7

(2)

—

(1)

—

4

Borrowings

39

1

—

—

—

40

Derivative financial instruments

8

—

(5)

—

—

3

Provisions and other

10

9

—

—

—

19

Trade and other receivables/payables

40

1

—

—

(2)

39

Inventories

7

3

—

(3)

—

7

(61)

12

—

—

—

(49)

81

4

2

—

4

91

(1,230)

46

2

(4)

5

(1,177)Tax on repatriation of earnings
Tax loss carry forwards
Net deferred tax asset/(liability)

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Strategy andvalue creation

Introduction

Balance at 31
December
2021(Charged)
Credited tothe income
statement(Charged)
Credited
directly toothercomprehensiv
e income andequityProperty, plant and equipment

(108)

14

(1)

Goodwill and other intangible
assets(1,283)(1)(4)

Other non-current financial
assets

126

(8)

—

Performance review
and outlook

Governance andrisk management

Tax losses unrecognised
Business
combinations

Balance at 31
December
2022

(3)

—

(98)

(6)

(12)

(1,306)

Currencytranslation

—

—

118

(64)

(4)

(13)

6

—

(75)

Share-based payments

4

3

—

—

—

7

Borrowings

45

(7)

—

1

—

39

Derivative financial instruments

6

(14)

16

—

—

8

Provisions and other

25

(15)

—

—

—

10

Trade and other receivables/
payables

28

13

—

(1)

—

40

Inventories

8

2

(2)

(1)

—

7

(55)

(6)

—

—

—

(61)

Other tax credits carry forwards
Tax loss carry forwards
Net deferred tax asset/(liability)

263

Supplementary
information

These (un)recognised tax losses carried forward expire as to the table below (in EUR million):

Retirement benefit asset/
obligations

Tax on repatriation of earnings

Financialstatements

1

(1)

—

—

—

—

105

(14)

(7)

(3)

—

81

(1,162)

(38)

(11)

(7)

(12)

(1,230)Tax losses, tax credits and other carried forwards
JDE Peet's has tax losses carried forward of EUR 736 million at 31 December 2023 (2022: EUR 697 million), for which
EUR 91 million was recognised as a deferred tax asset (2022: EUR 81 million). Unrecognised deferred tax assets on tax
losses amounted to EUR 89 million in 2023 (2022: EUR 82 million).

Tax losses recognised

Total tax losses

2023

2022

2023

2022

2023

2022

Within 1 year

9

6

—

—

9

6

1 to 2 years

6

6

—

—

6

6

2 to 3 years

8

6

—

—

8

6

3 to 4 years

13

9

—

—

13

9

4 to 5 years

16

14

7

—

23

14

Later

20

16

67

75

87

91

Unlimited

277

261

313

304

590

565

Balance at 31 December

349

318

387

379

736

697

JDE Peet's has US and Netherlands tax credits carry forwards at 31 December 2023 of EUR 22 million (2022: EUR 21
million) for which no deferred tax asset was recognised as it is not expected they will be utilised. The tax credits carryforwards expire between 5 to 8 years (EUR 15 million) and the remaining EUR 7 million are carried forward unlimited intime.
The tax effect of other deductible temporary differences that have not been recognised, amounted to EUR 32 million in
2023 (2022: EUR 33 million) as it is not expected they will be utilised.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

9. OTHER DISCLOSURES
9.1 POST EMPLOYMENT AND OTHER LONG-TERM EMPLOYEE BENEFIT PLANSJDE Peet's contributes to defined contribution retirement benefit plans that are recognised as expense whenemployees have rendered service entitling them to the contributions.
For defined benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, withactuarial valuations being carried out at the end of each fiscal year. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are charged or credited to OCI in the period in which they arise.
Past service cost is recognised immediately in the income statement. For defined benefit plans, the operating andfinance expense are recognised separately in the income statement. The amount recognised as operating cost in theincome statement is the cost of accruing pension benefits promised to employees over the year, plus the costs ofindividual events such as past service benefit enhancements, settlements and curtailments (such events are recognised
immediately in the income statement). The amount recognised as finance income includes a credit equivalent to theinterest income on the pension plans’ assets over the year, offset by a charge equal to the interest expense in theplans’ liabilities over the year.
The retirement benefit obligations recognised in the statement of financial position represent the present value of thedefined benefit obligation, as adjusted for past service cost, and as reduced by the fair value of plan assets.

Key accounting estimate and judgement—JDE Peet's sponsors defined benefit plans and provides otherpost-employment benefits. Assumptions are an important element in the actuarial methods that are used tomeasure the expense and obligations relative to employee benefits. The assumptions utilised include discountrate, inflation and indexation, life expectancy, payroll increase and health-care trends. Any change in theseassumptions could potentially result in a significant change to the pension assets, pension liabilities,
commitments and pension costs in future periods.

JDE Peet's operates a number of defined benefit and defined contribution plans for its employees.

Governance andrisk management

Financialstatements

Supplementary
information

264

Defined Contribution Plans
JDE Peet's sponsors defined contribution pension plans for its employees. The cost is determined by the contributions
to these plans and is recognised when it becomes due. The amount of expense recognised during the fiscal year 2023
was EUR 35 million (2022: EUR 33 million).

Defined Benefit Plans (Pension, Jubilee and Post-Employment Medical)
JDE Peet's sponsors defined benefit plans in a number of countries, with the most significant plans in the UK and
Germany. The defined benefit plans include pension plans, jubilee plans and post-employment medical benefit plans.
United Kingdom – The UK Pension Plan is fully funded on a technical provisions basis.
The Trustee of the plan implemented an investment strategy in which 90% of the plan assets are invested in matchingassets (corporate credits and – index linked – gilts) and 10% of plan assets are invested in worldwide equity. The
overall investment portfolio is structured in such a way that the volatility of the funded status is within 2% per year. The
target return of the investments is 50 – 75bps above gilts (excl. manager fees), while the technical provisions basis isset at Gilts +50bps. Under UK Pensions Law the sponsoring companies remain liable in case of future deficits in thepension plan.
The past service costs of EUR 11 million recognised as a benefit in the income statement for the year ending 31
December 2023 was a result of the change in legal view of the treatment of one the Plan Sections’ (Courtaulds) pension
increases. These are based on the Consumer Price Index (CPI) going forward for all Courtaulds-members who up until
2023 had increases based on the Retail Price Index (RPI). The Trustee of the Plan confirmed that the CPI is a bettermeasure of inflation, which should be used to value the pension liabilities. All affected plan members were informed
about the change in April 2023.
The value of the UK Plan at 31 December 2023 amounted to a net asset of EUR 432 million (2022: EUR 413 million). No
asset ceiling applies to this plan.
The funding of the plan was 132.9% at 31 December 2023 (2022: 125.5%).

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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Performance review
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Germany — There are six (largely) unfunded defined benefit plans in Germany. About 1,000 employees (2022: 1,000)
accrue benefits in two (closed) schemes: a jubilee plan and a deferred compensation plan. The total defined benefit
obligation at 31 December 2023 was EUR 144 million (2022: EUR 213 million) of which EUR 81 million (2022: EUR 82
million) was funded by means of a Contractual Trust Agreement.

Governance andrisk management

Financialstatements

265

Supplementary
information

Information on plan assets and defined benefit obligation per country
The defined benefit obligation at 31 December per country and the plan assets per country can be specified as follows(in EUR million):
Plan assets

A summary of the amounts recognised in the financial statements related to the pension, jubilee and post-employment
medical plans is as follows (in EUR million):

Defined benefit obligations

2023

2022

2023

2022

1,552

1,524

(1,120)(1,111)

Germany

81

77

(226)

(203)

Other

38

38

(54)

(51)

United Kingdom

2023

2022

Defined benefit obligation of funded plans(1,120)(1,111)

Fair value of plan assets

1,552

1,524

Funded defined benefit plans with a surplus

432

413

The weighted-average duration of the defined benefit obligations for the UK at 31 December 2023 is 11.6 years (2022:
11.8 years) and for Germany at 31 December 2023 is 16.8 years (2022: 16.6 years).

Defined benefit obligation of funded plans

(280)

(254)

The movement in the defined benefit obligation over the year is as follows (in EUR million):

Fair value of plan assets

119

115

Funded defined benefit plans with a deficit

(161)

(139)

Post-employment medical & jubilee benefits

(9)

(10)

Defined benefit obligation at 1 January

(170)

(149)

Employer service costs

Defined benefit liability

2023

2022

1,365

2,060

5

9

Interest expense

61

34

Past service costs

(11)

—

Administration costs

2

2

Actuarial (gain)/loss due to experience

(2)

87

Actuarial (gain)/loss due to demographic assumption changes

(14)

(13)

Actuarial (gain)/loss due to financial assumption changes

40

(670)

2022

Foreign currency translation

25

(67)

(72)

(77)

The following provides detailed disclosures regarding the pension, jubilee and the post-employment medical plans.
Pension Benefits — The reconciliation of the amounts recognised in the table above to the total defined benefit
obligation and fair value of plan assets is as follows (in EUR million):
2023
Total defined benefit obligation(1,400)(1,365)

Benefits paid

Total fair value of plan assets

1,671

1,639

Other

Net defined benefit position

271

274

Defined benefit obligation at 31 December

1

—

1,400

1,365

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
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Governance andrisk management

The movement in the fair value of plan assets is as follows (in EUR million):

266

Supplementary
information

The experience adjustments and actuarial gains and losses due to change in actuarial assumptions are as follows andrelate to the plans included in the statement of financial position at the end of the year (in EUR million):
2023

2022

1,639

2,323

8

7

Benefits paid

(72)

Interest income

Fair value of plan assets at 1 January

Financialstatements

2023

2022

Liability (gain) or loss due to experience

(2)

87

(77)

Liability (gain) or loss due to demographic and financial assumptions changes

26

(683)

76

40

Actuarial (gains) / losses on the defined benefit obligation

24

(596)

Return on plan assets greater/(less) than interest income

(14)

(565)

Asset (gain) or loss due to experience

14

565

Foreign currency translation

34

(89)

Actuarial (gain) or loss recognised

38

(31)

1,671

1,639

Employer contributions

Fair value of plan assets at 31 December

The weighted-average actual assumptions used in measuring the defined benefit cost recognised in the consolidated
income statement of the next fiscal year and plan obligations at the end of the fiscal year are as follows:

The amounts recognised in the income statement are as follows (in EUR million):
2023
Employer service costs

2022

2023

2022

5

9

UK

GermanyUK

Germany

Past service costs

(11)

—

Discount rate

4.50%

3.20%

4.80%

3.70 %

Interest expense on defined benefit obligation

61

34

Indexation rate inactive participants - deferred

2.75%

N/A

2.90%

N/A

Interest income on plan assets

(76)

(40)

Indexation rate inactive participants - pensioners

2.75%

2.00%

3.25%

2.00 %

2

2

Inflation rate

3.20%

2.50%

3.40%

2.50 %(19)

5

Future salary increases

N/A

2.75%

N/A

2.75 %

Administration costs
Total defined benefit cost recognised in the consolidated income statement

Of the total defined benefit recognised in the income statement a benefit of EUR 6 million (2022: cost of EUR 9 million)
was recognised in selling, general and administrative expenses and cost of sales for the period.

The discount rate is determined by utilising a yield curve based on high-quality, fixed-income investments that have an
AA bond rating to discount the expected future benefit payments to plan participants. Salary increase assumptions are
based upon historical experience and anticipated future management actions.

The amounts recognised in the statements of comprehensive income (before tax) are as follows (in EUR million):

Balance at 1 January

2023

2022

(325)

(309)

Actuarial (gains) / losses on the defined benefit obligation

24

(596)

Actuarial (gains) / losses on the plan assets

14

565

Foreign currency translation

(6)

15

Balance at 31 December

(293)

(325)

Assumptions regarding future mortality experience are set, based on actuarial advice in accordance with publishedstatistics and experience in each territory. Mortality assumptions for the most important countries are based on thefollowing mortality tables:• UK: SAPS S2 Pensioners +0.3 yr age rating with CMI Core Projection Model 2022 update, with a 1.25% long-term
trend, 0.25% initial addition to improvements, weights of 0%, 0% and 25% applied to 2020, 2021 and 2022
experience, respectively• Germany: Heubeck 2018G.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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Strategy andvalue creation

Performance review
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Sensitivity to changes in individual parameters used as of 31 December 2023 can be estimated as follows:• A 50 basis point decrease in the discount rate of interest would increase the defined benefit obligation byapproximately EUR 88 million (2022: EUR 87 million)• A 50 basis point increase in inflation assumption would increase the defined benefit obligation by approximately
EUR 56 million (2022: EUR 49 million )• A 50 basis point increase in the salary growth rate would increase the defined benefit obligation by approximately
EUR 5 million (2022: EUR 6 million).
The pension plan asset allocation differs per plan. On a weighted-average basis, the allocation was as follows:

Equity instruments

2023

2022

7.5%

7.1%

Bond instruments

4.8%

4.7%

Other

87.7%

88.2%

Total

100.0%

100.0%

Investment strategies are based on the composition of the plan liabilities. With the aid of asset liability management
modelling, analyses are made of possible future economic scenarios and investment portfolios. Based on theseanalyses, investment strategies are determined for each plan to produce optimal investment returns at acceptable
funding ratio risk levels. Less favourable years can be part of these scenarios. The strategic targets changed
substantially from 2009 since one of the pension plans in the United Kingdom with significant assets is inactive andtherefore the plan assets are mainly invested in fixed-income securities and cash instruments only, which are included
in “Other” in the table above.
Expected cash contributions to retirement benefit plans for fiscal year 2024 are EUR 10 million (2023: EUR 9 million).
The exact amount of cash contributions made to pension plans in any year is dependent on a number of factors
including minimum funding requirements in the jurisdictions in which JDE Peet's operates the tax deductibility ofamounts funded and arrangements made with the trustees of certain foreign plans.
Jubilee and Post-Employment Medical Benefits—JDE Peet's operates a post-employment medical benefit scheme in
the Netherlands and Jubilee schemes in the Netherlands, Austria and Germany. The method of accounting,assumptions and the frequency of valuations are similar to those used for defined benefit pension schemes except for

Governance andrisk management

Financialstatements

267

Supplementary
information

the treatment of actuarial gains and losses which are recognised immediately in the income statement. The plans are
unfunded.
The movement in the defined benefit obligation is as follows (in EUR million):
2023

2022

Balance at 1 January

10

13

Employer service cost—

1

Employer contribution

(1)

(1)

Actuarial (gain)/loss due to financial assumption changes—(3)

Balance at 31 December

910

9.2 PROVISIONS
Termination Benefits—Termination benefits are payable when employment is terminated by JDE Peet's before thenormal retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits.
Termination benefits are recognised when it is demonstrably committed to a termination and when the entity has adetailed formal plan to terminate the employment of current employees without possibility of withdrawal. In the case of
an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of
employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period
are discounted to their present value. The estimated costs associated with these benefits are reflected in the
restructuring provisions.
Provisions—Provisions, which are primarily for restructuring costs, legal claims, medical claims and environmental
obligations are recognised when JDE Peet's has a present legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably
estimated. Restructuring provisions primarily comprise employee termination payments. Provisions are not recognised
for future operating losses.
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the mostreliable evidence available at the reporting date, including the risks and uncertainties associated with the present
obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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When the carrying amount of a provision is an estimate of a single amount to be received or paid in the future, the costof debt is used to discount the provision. When an expected cash flow approach is used to determine the carrying
amount of the provision (the sum of probability-weighted amounts in a range of possible estimated amounts), the riskfree rate will be used to discount the provision.

Governance andrisk management

Financialstatements

268

Supplementary
information

The change in provisions was as follows (in EUR million):
Restructuring

Legal and other

Total

Balance at 1 January 2022

20

37

57

Additions charged to income statement

9

18

27

Payments

(9)

(4)

(13)

Key accounting estimate and judgement:

Reductions related from remeasurement or settlement without cost

1

—

1

Restructuring provisions—A provision for restructuring costs is recognised when a detailed formal plan for the
restructuring has been determined and the plan has been communicated to the parties that may be affected byit. The provision is based on a number of assumptions including the timing of the payments and the number of
employees that will ultimately receive the termination benefits. A change in these assumptions may result in asignificant change in the liability in future periods. Adjustments to previously recognised charges resulting from achange in estimate are recognised in the period in which the change is identified.

Currency translation differences

1

(1)

—

Balance at 31 December 2022

22

50

72

Non-current

5

28

33

Current

17

22

39

Balance at 31 December 2022

22

50

72

Additions charged to income statement

54

6

60

Payments

(20)

(6)

(26)

Reductions related from remeasurement or settlement without cost

(2)

(1)

(3)

Currency translation differences

—

1

1

Balance at 31 December 2023

54

50

104

Non-current

7

29

36

Current

47

21

68

Balance at 31 December 2023

54

50

104

In assessing the likelihood of occurrence of restructuring provisions, judgement is required to determine if an
outflow of economic resources is probable. Where it is probable, a liability is recognised and further judgement
is used to determine the level of the provision.
Legal and other provisions—JDE Peet's is involved in certain litigation and other legal proceedings. These
claims involve highly complex issues, damages and other matters. In assessing the likelihood of occurrence oflegal provisions, there is uncertainty as to estimating likely outcomes or ranges of possible loss, as
investigations are not conducted in a consistent manner across jurisdictions and each country and agency has
different set of laws, rules and regulations. Accordingly, the outcome of these matters cannot be predicted.
However, the unfavourable resolution of one or more of these proceedings could have a material adverse effecton the business, results of operations, financial conditions and/or cash flows. Where it is probable, a liability isrecognised and further judgement is used to determine the level of the provision.

Restructuring— An expense of EUR 54 million was recognised during the year ended 31 December 2023 (2022: EUR 9
million) mainly related to the actions to right-size the former CPG and Out-of-Home segments following theannouncement to combine these former separate segments into one segment Europe and the intended closure of the
production and research & development operations in Banbury, United Kingdom. The costs incurred in 2022 related toseveral smaller initiatives.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

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Performance review
and outlook

Governance andrisk management

Financialstatements

269

Supplementary
information

Legal and other provisions

9.3 OTHER NON-CURRENT ASSETS

The composition of legal and other provisions is as follows (in EUR million):

For the accounting policy on investments in associates reference is made to section 1.4 of this report. The compositionof other non-current assets is as follows (in EUR million):
2023

2022

2023

2022

Branded Apparel

15

15

Lease receivables

3

3

Other

35

35

Advance to related parties

24

24

Total

50

50

Investment in associates

15

20

Other non-current assets

30

39

Total

72

86

Branded Apparel—The provision relates to Branded Apparel, a previously divested business. The provision includes
medical claims related to injuries caused to former employees as a result of noise-induced hearing loss and asbestos
exposure, which may result in payments to those individuals for their related medical expenses. The expense related tothis provision was recognised in selling, general and administrative expenses in the income statement.

The advance to related parties represent loans granted to key management members in relation to their share-based
payment plans. The investments in associates presented are classified as other (non-strategic) investments inaccordance with JDE Peet's accounting policies.

Other—Includes items such as:
•
•
•
•
•
•

Decommissioning provisions related to property, plant and equipment
Environmental provisions
Non-income tax provisions
Provisions for labour and insurance claims
Warranty provisions
Contingent liabilities assumed in and indemnifications resulting from business combinations.

9.4 OTHER NON-CURRENT LIABILITIESThe composition of other non-current liabilities is as follows (in EUR million):
Note

Deferred revenue

2023

2022

61

59

Share-based payment liability

7.1

8

17

Management-owned shares liability

7.1

26

25

Other

12

9

Total non-current liabilities

107

110

Deferred revenue—Deferred revenue relates to the customer loyalty programmes as further described in accounting
policies (note 2.2). The current portion of this deferred revenue is included in trade and other payables (note 4.3).
Share-based payment and Management-owned shares liability—All fair value changes were recognised in the profit
and loss account for a benefit of EUR 1 million (2022: EUR 4 million expense) in the selling, general and administrative
expenses and an expense of EUR 4 million (2022: benefit of EUR 4 million) in the finance expenses for the share-based
payment liability and the management-owned shares liability, respectively. For more information about these plans
reference is made to note 7.1.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
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Governance andrisk management

The change in the management-owned shares was as follows (in EUR million):

Financialstatements

270

Supplementary
information

Operating lease commitments–JDE Peet's leases certain facilities, equipment and vehicles under agreements that areclassified as operating leases. The building leases have various lease terms, while the equipment and vehicle leases
have terms of generally less than seven years. Leases of assets with a low value, or term of less than 12 months areincluded in the operating lease commitments.

2023

2022

Balance at 1 January

25

68

Fair value through income statement

4(4)

Vesting of share-based payments—

7

Exercises

142

Currency translation

—

5

2023

2022

Shares cancelled

(4)

(3)

Not later than one year33

Shared sold

(5)

(50)

Later than one year and not longer than five years

22

Reclassification from / (to) equity(8)—

Later than five years——

Balance at 31 December

26

25

5

5

9.5 COMMITMENTS AND CONTINGENCIES
Commitments—The off-balance sheet commitments consist of the following (in EUR million):

Purchase commitments
Operating leases
Guarantees

2023

2022

817

773

5

5

1

2

823

780

On 24 July 2023, JDE Peet’s announced that it had signed an agreement to acquire 100% of the shares in the Maratá
coffee & tea business in Brazil from JAV Group. This acquisition was completed on 4 January 2024. Reference is madeto notes 9.6 Subsequent Events and 3.1 Business Combinations.
Purchase commitments–Purchase commitments primarily consist of commitments related to the purchases of green
coffee, packaging, other raw materials/commodities and services.

The future aggregate minimum lease payments under non-cancellable operating leases are as follows (in EUR million):

Guarantees–JDE Peet's is party to a variety of agreements under which it may be obligated to indemnify a third party
against losses arising from a breach of representation and covenants related to matters such as title to assets sold, thecollectability of receivables, specified environmental matters, lease obligations assumed and certain tax matters. In
each of these circumstances, payment by JDE Peet's is conditioned on the other party making a claim pursuant to theprocedures specified in the contract. These procedures allow JDE Peet's to challenge the other party’s claims. In
addition, the obligations under these agreements may be limited in terms of time and/or amount, and in some cases
JDE Peet's may have recourse against third parties for certain payments it made. Historically, payments made by JDE
Peet's under these agreements have not had a material effect on its business, financial condition or results ofoperations.
Contingencies—JDE Peet's has various contingent liabilities. The most significant contingencies are described below:• JDE Peet's is involved from time to time in legal and arbitration proceedings arising in the ordinary course ofbusiness—In the judgement of management no losses, in excess of provisions made, which could be material in
relation to JDE Peet's financial position are likely to arise in respect of these matters. Furthermore, the exposures
cannot be reliably estimated.

JDE Peet's N.V.
Annual Report 2023•

JDE Peet’s
at a glance

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Strategy andvalue creation

Performance review
and outlook

Taxes—JDE Peet's operates in many jurisdictions and is subject to a wide variety of taxes per jurisdiction. Tax
legislation can be highly complex and subject to interpretation. As such, the recognition and measurement of tax
positions and determination of contingent tax liabilities requires significant judgement. Contingent liabilities cover
tax risks for which the outflow is assessed lower than probable but possible and may be challenged in tax disputes
and proceedings arising in the ordinary course of business. JDE Peet's contingent liabilities that arise in respect oftax litigation or investigations by fiscal authorities mainly relate to tax positions in Brazil and include a large numberof cases with a risk assessment lower than probable but possible not to be accepted, one of which arose in 2023
with an exposure in excess of EUR 50 million for fiscal years 2019 to 2022 attributable to non-income tax mattersfor which JDE Peet’s already received a favourable non-final decision from the first-level administrative courts of theState of São Paulo for fiscal years 2019 up to and including 2022. Assessing the amount of such tax contingencies
is highly judgemental, and the timing of possible outflows is uncertain. Management believes they will prevail infurther proceedings with the tax authorities, however there can be no guarantee of success in court. In each case
we believe the position is strong so they have not been provided for.

Any exposures assessed possible, not probable, were measured at their fair value upon a business combinationtransaction.
JDE Peet's considered the impact of climate risk on the recognition and measurement of provision and contingencies.
No such provision or contingency has been recognised to date.

9.6 SUBSEQUENT EVENTS
On 5 January 2024, JDE Peet's successfully completed the acquisition of the Brazilian coffee & tea business Maratáfrom JAV Group for a total purchase consideration of BRL 3,350 million before closing adjustments of approx. BRL 400
million (net of cash acquired), which was first announced on 24 July 2023. The acquisition expanded JDE Peet’s’
emerging markets presence.
Maratá’s coffee & tea business is predominantly present in the northern part of Brazil through its long-standing andwell-known brands Café Maratá and Chá Maratá. The business employs around 1,200 employees, operates two
manufacturing plants and reported around BRL 1.3 billion annual average sales for the last two years.
On 18 January 2024, JDE Peet’s announced it has signed a long-term global license agreement to manufacture, market
and sell Caribou consumer and foodservice coffee products, excluding Caribou coffeehouses for a total consideration

Governance andrisk management

Financialstatements

271

Supplementary
informationof approx. EUR 240 million. The transaction, which is expected to close in the first quarter of 2024, provides JDE Peet’s
a strong platform to expand its premium coffee portfolio in North America.
Under the terms of the agreement, JDE Peet’s will acquire Caribou’s roasting operations in Minneapolis, Minnesota.
The two companies have also reached a long-term strategic arrangement under which JDE Peet’s will supply coffee
products for sale in Caribou’s coffeehouses.

9.7 LEGAL ENTITIESBelow is a list of significant subsidiaries at 31 December 2023. A full list of legal entities is filed with the Chamber ofCommerce. Ownership percentages have been based on the number of issued and outstanding shares, except for JDE
Holdings Minority B.V. where profit allocation rights are used since that reflects ownership of the entity moreaccurately.
Name of subsidiary

Country ofincorporation

Ownership
percentage 2023

Ownership
percentage 2022

D.E Holdco UK Limited
DEF Holding SNC

United Kingdom

99.7%

99.8%

France

99.7%

99.5%

JACOBS Deutschland Holding GmbHGermany

99.7%

99.5%

JACOBS DOUWE EGBERTS AU PTY. LTD.

Australia

99.7%

99.5%

JACOBS DOUWE EGBERTS B.V.

The Netherlands

99.7%

99.5%

JACOBS DOUWE EGBERTS BE BV

Belgium

99.7%

99.5%

Jacobs Douwe Egberts Coffee Trade GR EPE

Greece

99.7%

99.5%

JACOBS DOUWE EGBERTS BR Comercialização de Cafés Ltda.

Brazil

99.7%

99.5%

JACOBS DOUWE EGBERTS CZ s.r.o.

Czech Republic

99.7%

99.5%

JACOBS DOUWE EGBERTS DE GmbHGermany

99.7%

99.5%

JACOBS DOUWE EGBERTS DK APS

Denmark

99.7%

99.5%

JACOBS DOUWE EGBERTS ES, S.L.U.

Spain

99.7%

99.5%

JACOBS DOUWE EGBERTS Export NL B.V.

The Netherlands

99.7%

99.5%

JACOBS DOUWE EGBERTS FR SNC

France

99.7%

99.5%

JACOBS DOUWE EGBERTS FR SAS

France

99.7%

99.5%

JACOBS DOUWE EGBERTS GB LTD

United Kingdom

99.7%

99.5%

Jacobs Douwe Egberts Holdings Asia NL B.V.

The Netherlands

99.7%

99.5%

JACOBS DOUWE EGBERTS Holdings B.V.

The Netherlands

99.7%

99.5%

JACOBS DOUWE EGBERTS International B.V.

The Netherlands

99.7%

99.5%

JACOBS DOUWE EGBERTS NL B.V.

The Netherlands

99.7%

99.5%

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Name of subsidiary

Country ofincorporation

JACOBS DOUWE EGBERTS NORGE AS

Strategy andvalue creation

Performance review
and outlook

Ownership
percentage 2023

Ownership
percentage 2022

Norway

99.7%

99.5%

JACOBS DOUWE EGBERTS NZ limited

New Zealand

99.7%

99.5%

JACOBS DOUWE EGBERTS OPS CZ s.r.o.

Czech Republic

99.7%

99.5%

JACOBS DOUWE EGBERTS OPS GB Ltd

United Kingdom

99.7%

99.5%

JACOBS DOUWE EGBERTS PL sp. z o.o.

Poland

99.7%

99.5%

JACOBS DOUWE EGBERTS PRO NL B.V.

The Netherlands

99.7%

99.5%

JACOBS DOUWE EGBERTS RO SRLRomania

99.7%

99.5%

JACOBS DOUWE EGBERTS RUS LLC

Russia

99.7%

99.5%

JACOBS DOUWE EGBERTS S.E. AB

Sweden

99.7%

99.5%

JACOBS DOUWE EGBERTS TH Ltd.

Thailand

99.7%

99.5%

JACOBS DOUWE EGBERTS Treasury B.V.

The Netherlands

99.7%

99.5%

JOBmeal Group AB

Sweden

99.7%

99.5%

Koninklijke Douwe Egberts B.V.

The Netherlands

99.7%

99.5%

LLC Jacobs Douwe Egberts Ukraina

Ukraine

99.7%

99.5%

Maison Lyovel SAS

France

99.7%

99.5%

Of Çaysan Tarım Ürünleri Entegre Tesisleri Sanayi ve Ticaret Anonim

Turkey

69.8%

69.6%

Old Town Kopitiam Sdn. Bhd.

Malaysia

99.7%

99.5%

SCML (Thailand) Co., Ltd.

Thailand

99.7%

99.5%

Super Coffeemix Ltd.

Myanmar

59.8%

59.7%

Super Foods Specialists (M) Sdn. Bhd.

Malaysia

99.7%

99.5%

Super Food Technology Sdn. Bhd.

Malaysia

99.7%

99.5%

White Cafe Sdn. Bhd.

Malaysia

99.7%

99.5%

Wuxi Super Food Technology Co., Ltd.

China

99.7%

99.5%

Peet’s Coffee, Inc.

United States

97.9%

98.0%

HH Peet's China Limited

Hong Kong

61.8%

61.8%

In addition to these significant subsidiaries, JDE Peet's has other consolidated entities in the countries listed, and also
in the following countries: Austria, Belarus, Bulgaria, Finland, Georgia, Hungary, Indonesia, Ireland, Isle of Man, Italy,
Kazakhstan, Lithuania, Mexico, Morocco, Philippines, Portugal, Singapore, Slovakia, South Africa, Switzerland andVietnam.

Governance andrisk management

Financialstatements

Supplementary
information

272

Apart from certain cash restrictions (refer to note 5.3 Cash and Cash Equivalents), there are no significant restrictions
on JDE Peet's' ability to access or use assets, and to settle liabilities within these subsidiaries.
The financial statements of the parent and the subsidiaries used in the preparation of the consolidated financial
statements have the same reporting date.

JDE Peet's N.V.
Annual Report 2023

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at a glance

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273

STATEMENTS ON RELEASE FROM THE DUTY TO DISCLOSE FINANCIAL STATEMENTS
The following German entities are included in the financial statements of the JDE Peet's N.V., Amsterdam, theNetherlands, and make use of the release from the duty to disclose financial statements and reports pursuant § 264 (3)and § 291 of the German Commercial Code:• Jacobs Deutschland Holding GmbH, Bremen/Germany• JACOBS DOUWE EGBERTS REAL ESTATE DE GmbH, Bremen/Germany• JACOBS DOUWE EGBERTS DE GmbH, Bremen/Germany• JACOBS DOUWE EGBERTS SERVICES DE GmbH, Bremen/Germany
The Company issued a guarantee under Article 403 of Part 9 of Book 2 of the Dutch Civil Code in favour of thefollowing Dutch entities:• JACOBS DOUWE EGBERTS B.V.
• Global Joure Brands B.V.
• JACOBS DOUWE EGBERTS Holdings B.V.
• JACOBS DOUWE EGBERTS International B.V.
• Koninklijke Douwe Egberts B.V.
• JACOBS DOUWE EGBERTS Treasury B.V.
• JACOBS DOUWE EGBERTS Minority B.V.
• Jacobs Douwe Egberts Holdings Asia NL B.V.
• JACOBS DOUWE EGBERTS Export NL B.V.
• JACOBS DOUWE EGBERTS PRO NL B.V.
• JACOBS DOUWE EGBERTS NL B.V.
• JACOBS DOUWE EGBERTS Holdings Nordics NL B.V.
• D.E Global Finance B.V.
• JDEP Holding B.V.

•
•
•
•
•
•
•
•
•
•
•

New Oak 2 B.V.
New Oak Holding B.V.
Oak 1753 B.V.
DE US, Inc.
Oak Holdco B.V.
Oak International B.V.
Oak InvestCo B.V.
Douwe Egberts Finance B.V.
JDE Holdings Minority B.V.
Delta Charger Holdco B.V.
Oak InvestCo 2 B.V.

In addition, JACOBS DOUWE EGBERTS International B.V. issued comfort letters in favour of the following entities:• JACOBS DOUWE EGBERTS FRANCE SNC• DEF FINANCE SNC• Maison Lyovel SAS• Jacobs Douwe Egberts IE Ltd• D.E. Holding UK Ltd• Jacobs Douwe Egberts Ukraine LLC
JACOBS DOUWE EGBERTS Holdings Asia NL B.V. issued a comfort letter in favour of JACOBS DOUWE EGBERTS
HLD SGP SG Pte. Ltd.

JDE Peet's N.V.
Annual Report 2023

COMPANYFINANCIALSTATEMENTS

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

Governance andrisk management

Financialstatements

Supplementary
information

274

JDE Peet's N.V.
Annual Report 2023

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at a glance

Strategy andvalue creation

Introduction

Performance review
and outlook

Governance andrisk management

COMPANY INCOME STATEMENT
For the years ended 31 December 2023 and 31 December 2022
In EUR million
Note

2023

2022

Selling, general and administrative expense

(40)

(16)

Operating profit

(40)

(16)

Finance income

59

54

Finance expense

(154)

(74)

Share of profit of subsidiaries

488

800

Profit before income taxes

353

764

Income tax benefit

14

7

Profit for the period

367

771

Financialstatements

Supplementary
information

275

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Financialstatements

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Supplementary
information

COMPANY BALANCE SHEETAt 31 December 2023 and31 December 2022
Before appropriation of profit in EUR million

2023

2022 restated3

11,458

11,415Equity:

5

5,480

4,944

Share capital

Note

Non-current assets:
Investments in subsidiaries
86

Loans receivable

Note

2023

2022 restated55Equity and liabilities

6

Deferred tax asset

4—

Share premium

9,585

9,997

Derivative financial instruments

13

46

Treasury shares

(38)

(471)

Legal reserves:
10

(21)

Other financial assets

2

5

16,957

16,410– Cash flow hedge reserve– Foreign currency translation reserve

(730)

(635)

Trade and other receivables

4

32

29

– Other legal reserves

194

46

Loans receivable

5

425

—

Other reserves

1,642

1,360

Income tax receivable

141Profit for the period

Derivative financial instruments

4

5Current assets:

Total assets

475

35

17,432

16,445367

771

11,035

11,052

5,193

4,696

Non-current liabilities:
Borrowings

8

Deferred income tax liabilities

3

3

Derivative financial instruments

25

—

5,221

4,699

Current liabilities:
Borrowings

8

872

454

Trade and other payables

7

210

197

94

43

Derivative financial instruments

Total equity and liabilities

86

Restated for the classification as non-current in 2022.

1,176

694

17,432

16,445

JDE Peet's N.V.
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
1. BASIS OF PREPARATION

3. INVESTMENTS IN SUBSIDIARIESThe Company applies the option provided in Section 2:362 (8) of the Dutch Civil Code for the principles for therecognition and measurement of assets and liabilities and determination of the result for its Company Financial
Statements. This means that the principles for the recognition and measurement of assets and liabilities anddetermination of the result of the Company Financial Statements of the Company are the same as those applied for theConsolidated Financial Statements under IFRS as adopted by the EU.

The movements of the investments in subsidiaries are as follows (in EUR million):

The Company Financial Statements are prepared to comply with the requirements of the Dutch Civil Code. There are
no differences between total Shareholders’ Equity and Net profit for the period determined under the Dutch Civil Codeand that determined in accordance with IFRS. In concluding, the Company has accounted for its investments in
subsidiaries using the net asset value method of accounting versus the cost method or fair value method.

Balance at 1 January

The principles of valuation and determination of result for the Company’s annual financial statements and consolidated
financial statements are the same. For the principles of valuation of assets and liabilities and for the determination of
result reference is made to the notes to the consolidated financial statements.
The investments in subsidiaries, other than affiliates, are carried at net asset value. The net asset value is determinedby measuring the assets, provisions and liabilities and calculating the result according to the accounting policies
applied in the Consolidated financial statements.

2022
11,140

Net result

488

800

Dividends

(351)

(566)

Cash flow hedge reserve

39

(57)

Foreign currency translation

(109)

75

Other reserves

(20)

8

Other

(4)

15

11,458

11,415

2023

2022

Receivable from other JDE Peet's companies

27

18

Other receivables

5

11

Total

32

29

Balance at 31 December

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES

2023
11,415

4. TRADE AND OTHER RECEIVABLES
The composition of trade and other receivables is as follows (in EUR million):

All trade and other receivables are due within one year, no amounts are provided for.

JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Strategy andvalue creation

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Performance review
and outlook

5. LOANS RECEIVABLE
The outstanding amount of loans provided to New Oak 2 B.V. and JACOBS DOUWE EGBERTS International B.V. at
31 December 2023 was EUR 4,905 million (including a loan denominated in US dollars for USD 385 million) and EUR
1,000 million, respectively (2022: EUR 4,944 million and nil, respectively). The weighted-average interest rate was
1.53% (2022: 0.65%) with maturity dates from 2024 to 2034. At 31 December 2023, an amount of EUR 425 million was
maturing within 12 months (2022: nil). We have assessed the credit risk associated with these loans and concluded that
there was no material risk identified.
In EUR millions

31 December
2022

Additions

Repayments

Currencytranslation

31 December
2023

4,944

—

(28)

(11)

4,905

—

1,000

—

—

1,000

4,944

1,000

(28)

(11)

5,905

1 January
2022

Additions

Repayments

Currencytranslation

31 December
2022

New Oak 2 B.V.

4,921

—

—

23

4,944

Total

4,921

—

—

23

4,944

New Oak 2 B.V.
JACOBS DOUWE EGBERTS International B.V.
Total

Governance andrisk management

Financialstatements

Supplementary
information

278

JDE Peet's N.V.
Annual Report 2023

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at a glance

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Financialstatements

279

Supplementary
information

6. SHAREHOLDERS’ EQUITY
The movements of the shareholders’ equity are as follows (in EUR million):

Share capital

Share premium

Treasury shares

Legal reserves

Other reserves

Profit for theperiodTotal equity

Balance at 31 December 2021

5

9,975

—

(602)

880

765

11,023– Application of hyperinflationary accounting

—

—

—

—

31

—

31

Balance at 1 January 2022

5

9,975

—

(602)

911

765

11,054– Profit for the period

—

—

—

—

—

771

771

– Retirement benefit obligation related items

—

—

—

—

10

—

10

– Foreign currency translation

—

—

—

76

(14)

—

62

– Foreign currency contracts

—

—

—

(46)

—

—

(46)

– Net investment hedge

—

—

—

(27)

—

—

(27)

Total Comprehensive Income / (Loss)

—

—

—

3

(4)

771

770

– Shared-based payment transactions

—

—

—

—

28

—

28

– Dividends

—

—

—

—

(339)

—

(339)

– Appropriation of profit 2021

—

—

—

—

765

(765)

—

– Share buyback transaction

—

—

(500)

—

—

—

(500)

– Issuance of shares

—

22

29

—

—

—

51

– Other transactions with shareholders

—

—

—

—

(12)

—

(12)

– Other changes in legal reserves

—

—

—

(11)

11

—

—

Balance at 31 December 2022

5

9,997

(471)

(610)

1,360

771

11,052

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280

Supplementary
information

Share capital

Share premium

Treasury shares

Legal reserves

Other reserves

Profit for theperiodTotal equity

Balance at 31 December 2022

5

9,997

(471)

(610)

1,360

771

11,052– Application of hyperinflationary accounting

—

—

—

—

(2)

—

(2)

Balance at 1 January 2023

5

9,997

(471)

(610)

1,358

771

11,050– Profit for the period

—

—

—

—

—

367

367

– Retirement benefit obligation related items

—

—

—

—

(28)

—

(28)

– Foreign currency translation

—

—

—

(109)

6

—

(103)

– Foreign currency contracts

—

—

—

31

—

—

31

– Net investment hedge

—

—

—

14

—

—

14

Total Comprehensive Income / (Loss)

—

—

—

(64)

(22)

367

281

– Shared-based payments

—

—

—

—

24

—

24

– Dividends

—

—

—

—

(339)

—

(339)

– Appropriation of profit 2022

—

—

—

—

771

(771)

—

– Issuance of shares

—

—

21

—

—

—

21

– Cancellation of treasury shares

—

(412)

412

—

—

—

—

– Other

—

—

—

—

(2)

—

(2)

– Other changes in legal reserves

—

—

—

148

(148)

—

—

Balance at 31 December 2023

5

9,585

(38)

(526)

1,642

367

11,035

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7. TRADE AND OTHER PAYABLES

9. COMMITMENTS AND CONTINGENCIESThe composition of trade and other payables is as follows (in EUR million):

Contingencies and commitments to which the Company is exposed, are disclosed in note 9.5 of the Consolidated
financial statements. The legal entities to which the declarations of joint and several liability relate, are listed in thestatements on release from the duty to disclose financial statements in the consolidated financial statements.

2023

2022

Trade and other payables

39

26

Dividend payable

170

170

1

1

210

197

Payable to group companies
Total

10. RELATED PARTIES
Loans from related parties
See note 8 Borrowings for any loans, including the overdraft balance in the cashpool, from related parties.

The carrying amount of the trade and other payables is considered a close approximation of their fair value due to theirshort maturity.

Loans to related parties
See note 5 Other (non-)current assets for any loans to related parties.

During the Annual General Meeting of Shareholders on 25 May 2023, a dividend of EUR 0.70 per share was approved,
payable in two instalments of EUR 0.35 on 14 July 2023 and 26 January 2024.

8. BORROWINGSThe Company has unsecured notes outstanding, please refer to note 5.2 Borrowings in the consolidated financial
statements for more details.
At 31 December 2023, the Company had a bank overdraft with a group company for a total of EUR 420 million (2022:
EUR 454 million).

Other
In note 7.2 Related-party transactions of the Consolidated financial statements, the other relevant disclosures inrelation to Related Parties (such as fiscal unity, loans to management and contribution of the parent) are further
disclosed.

11. BOARD REMUNERATIONThe Board remuneration is disclosed in note 7.2 Related-party transactions of the Consolidated financial statements,
where the provision in art 2:383.1 DCC is applied.

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6 March 2024

F.J.J. Simon
Executive Director

O.C.G. Goudet

J.J.B.C. Creus

G.P. Harf

A.M. García Fau

Chairman, non-executive Director

Non-executive Director

Non-executive Director

Non-executive Director

F.A. Engelen

S. MacFarlane

A. Richards

L. SteinNon-executive Director

Non-executive Director

Non-executive Director

Non-executive Director

D. Hennequin

P.N. Lindenberg

L. Vandevelde

J.F.D. Katgert

Non-executive Director

Non-executive Director

Non-executive Director

Non-executive Director

P. Abadie Capel
Non-executive Director

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OTHER INFORMATIONPROFIT APPROPRIATION

27.4 Distributions from the Company's distributable reserves are made pursuant to a resolution of the General Meetingon the proposal of the Board.

Articles of association provisions governing the distribution of profit:
Article 27 of the articles of association states the following:
27.1 After adoption of the annual accounts, but no later than within six months from the end of the financial year
concerned, a cash distribution will be made on the Preference Shares in respect of the previous financial year, which
distribution will be calculated as follows:a. if the Preference Shares are paid up at the expense of the Company's reserves, the annual distribution will be one
thousand euro (EUR 1,000) for all outstanding Preference Shares together;b. in other cases, the distribution will be a percentage equal to three (3) months’ Euribor (Euro Interbank Offered Rate)– weighted to reflect the number of days for which the payment is made – plus a premium, to be determined by the
Board of at least one percentage point and at most five percentage points, depending on the prevailing market
conditions.
The distributions referred to under (a) and (b) will be calculated over the proportionate period of time if the relevant
Preference Shares were issued and outstanding for a part of the financial year. Distributions in respect of thePreference Shares are calculated over the paid-up part of their nominal value. The making of such distributions issubject to the provision of Article 27.8.
The amounts of such distributions will be charged to the profits realised during the financial year in respect of which it
is made or, if and to the extent such profits are insufficient, any other part of the Company's distributable equity.
No further distributions will be made on the Preference Shares.
27.2 The Board may decide that the profits realised during a financial year, and remaining after application of
Article 27.1 are used to increase and/or form reserves.
27.3 The profits remaining after application of Articles 27.1 and 27.2 shall be put at the disposal of the General Meeting.
The Board shall make a proposal for that purpose. A proposal to pay a dividend shall be dealt with as a separate
agenda item at the General Meeting of Shareholders.

27.5 Provided it appears from an interim statement of assets signed by the Board that the requirement mentioned in
Article 27.8 concerning the Company's equity has been fulfilled, the Board may make one or more interim distributions
to the holders of Ordinary Shares and/or to the holders of Preference Shares, with regard to Preference Shares,
however, subject to the maximum distribution amount set forth in Article 27.1.
27.6 The Board may decide that a distribution on Ordinary Shares shall not take place as a cash payment but in kind, or
as a payment in Ordinary Shares, or decide that holders of Ordinary Shares shall have the option to receive a
distribution as a payment in cash or in kind and/or as a payment in Ordinary Shares, out of the profit and/or at theexpense of reserves, provided that the Board is designated by the General Meeting pursuant to Article 6.2. The Board
shall determine the conditions applicable to the aforementioned choices.
27.7 The Company's policy on reserves and dividends shall be determined and may be amended by the Board. The
adoption, and thereafter each amendment of the policy on reserves and dividends, shall be discussed and accounted
for at the General Meeting of Shareholders under a separate agenda item.
27.8 Distributions may be made only insofar as the Company's equity exceeds the amount of the paid-in and called-up
part of the issued capital, increased by the reserves which must be kept by virtue of the law or these Articles of
Association.
27.9 All distributions may be made in another currency than euro.

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PROPOSED PROFIT APPROPRIATIONJDE Peet's' Board proposes to pay a dividend of EUR 0.70 per share in cash related to FY 23. The dividend will be paidin two instalments of EUR 0.35 each. The first payment date will be on Friday 12 July 2024, with the ex-dividend dateon Monday 8 July 2024 and the record date on Tuesday 9 July 2024. The second payment date will be on Friday 24
January 2025, with the ex-dividend date on Monday 20 January 2025 and the record date on Tuesday 21 January
2025. The dividend proposal is subject to approval by the Annual General Meeting of Shareholders to be held on
Thursday 30 May 2024.

Governance andrisk management

Financialstatements

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information

284

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INDEPENDENT AUDITOR'S REPORTTo the shareholders and the Board of JDE Peet’s N.V.

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS FOR THE YEARENDED 31 DECEMBER 2023 INCLUDED IN THE 2023 ANNUAL REPORT
We have audited the financial statements for the year ended 31 December 2023 of JDE Peet’s N.V., based in
Amsterdam, the Netherlands. The financial statements comprise the consolidated financial statements and thecompany financial statements.

OUR OPINION
In our opinion:••

The accompanying consolidated financial statements give a true and fair view of the financial position of JDE Peet’s
N.V. as at 31 December 2023, and of its result and its cash flows for 2023 in accordance with International Financial
Reporting Standards as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil
Code.
The accompanying company financial statements give a true and fair view of the financial position of JDE Peet’s
N.V. as at 31 December 2023, and of its result for 2023 in accordance with Part 9 of Book 2 of the Dutch Civil Code.

The consolidated financial statements comprise:
1. The Consolidated Statement of Financial Position as at 31 December 2023.
2. The following statements for the year ended 31 December 2023: the Consolidated Income Statement, theConsolidated Statements of Comprehensive Income, Changes in Equity and Cash Flows.
3. The Notes comprising material accounting policy information and other explanatory information.
The company financial statements comprise:
1. The Company Balance Sheet as at 31 December 2023.
2. The Company Income Statement for the year ended 31 December 2023.
3. The Notes comprising a summary of the significant accounting policies and other explanatory information.

Basis for our opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities
under those standards are further described in the 'Our responsibilities for the audit of the financial statements' sectionof our report.
We are independent of JDE Peet’s N.V. in accordance with the EU Regulation on specific requirements regarding
statutory audit of public-interest entities, the Wet toezicht accountantsorganisaties (Wta, Audit firms supervision act),
the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics forProfessional Accountants, a regulation with respect to independence) and other relevant independence regulations in
the Netherlands. Furthermore, we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA,
Dutch Code of Ethics).
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Information in support of our opinion
We designed our audit procedures in the context of our audit of the financial statements as a whole and in forming our
opinion thereon. The following information in support of our opinion was addressed in this context, and we do notprovide a separate opinion or conclusion on these matters.

Materiality
Based on our professional judgement we determined the materiality for the financial statements as a whole at EUR 48
million (2022: EUR 61 million). The materiality is based on 6.5% of normalized profit before tax (2022: 6.0% of profit
before tax). In this respect, 2023 profit before tax was normalized for the EUR 185 million impairment recognizedagainst the Jacobs brand intangible asset (Note 1.6). We have also taken into account misstatements and/or possible
misstatements that in our opinion are material for the users of the financial statements for qualitative reasons.
Audits of group entities (components) were performed using materiality levels determined by the judgement of thegroup engagement team, having regard to the materiality of the consolidated financial statements. Component
materiality did not exceed EUR 25 million (2022: EUR 32 million) and for the majority of the components materiality issignificantly less than this amount.

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We agreed with the Board that misstatements in excess of EUR 2.4 million (2022: EUR 3.0 million), which are identified
during the audit, would be reported to them, as well as smaller misstatements that in our view must be reported on
qualitative grounds.

Scope of the group audit
JDE Peet’s N.V. is at the head of a group of entities. The financial information of this group is included in the
consolidated financial statements of JDE Peet’s N.V.
Because we are ultimately responsible for our opinion, we are also responsible for directing, supervising andperforming the group audit. In this respect we have determined the nature and extent of the audit procedures to be
carried out for the group entities (components). Decisive were size and/or risk profile of the components. On this basis,
we selected components for which an audit had to be carried out on the complete set of financial information or
specific items.
Our group audit mainly focused on significant group entities. Our assessment of entities that are significant to the group
was done as part of our audit planning and was aimed to obtain sufficient coverage of the risks of material
misstatement for significant account balances, classes of transactions, and disclosures that we have identified. In
addition, we considered qualitative factors as part of our assessment. In establishing the overall group audit strategy
and plan, we determined the type of work that needed to be performed at the components by the group engagement
team and by the component auditors. We responded to changes relevant to the group in 2023 in determining thecomponents in our scope and the nature of procedures to be performed. Such components included the company’s
operations in Brazil, France, Germany, United Kingdom, Russia and the United States.
We have performed audit procedures ourselves at JDE Peet’s N.V. corporate entities and operations in the
Netherlands. Furthermore, we performed audit procedures at group level on areas such as the group consolidation,
financial statement disclosures, impairment testing for goodwill and other intangible assets, group accounting fortreasury, group accounting for specific material deferred tax balances, share-based payments, and critical accounting
positions subject to management estimates. Specialists were involved, amongst others, in areas such as ESG, treasury,
information technology, tax, accounting, pensions and valuations. For component audit teams, the group engagement
team provided detailed written instructions, which, in addition to communicating the requirements of component audit
teams, detailed significant audit areas and information obtained centrally relevant to the audit of individual components
including awareness for risk related to management override of controls.

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Where the work was performed by component auditors, we developed a plan for overseeing each component audit
team based on its relative significance and specific risk characteristics. Our oversight procedures included physical or
remote working paper reviews for, amongst others, the majority of the components listed above, holding conference
calls, attending meetings and reviewing component audit team deliverables to gain sufficient understanding of the work
performed. The nature, timing and extent of our oversight procedures varied based on both quantitative and qualitative
considerations.
The scope of component auditors comprised of full-scope audits and audits of specified account balances and classesof transactions, the coverages achieved in our audit our outlined in the table below:
Audit coverage of consolidated revenues

66%

Audit coverage of consolidated operating profit

72%

Audit coverage of consolidated total assets

94%

For the remaining entities, we performed a combination of specific audit procedures and analytical procedures at grouplevel relating to the risks of material misstatement for significant account balances, classes of transactions, anddisclosures that we have identified.
By performing the procedures mentioned above at group entities, together with additional procedures at group level,
we have been able to obtain sufficient and appropriate audit evidence about the group's financial information to provide
an opinion on the consolidated financial statements.

Audit approach fraud risks
We identified and assessed the risks of material misstatements of the financial statements due to fraud. During our
audit we obtained an understanding of the entity and its environment and the components of the system of internal
control, including the risk assessment process and management's process for responding to the risks of fraud andmonitoring the system of internal control and how the board exercises oversight, as well as the outcomes. We refer tothe risk management section of the annual report for management's fraud risk assessment.

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We evaluated the design and relevant aspects of the system of internal control and in particular the fraud risk
assessment, as well as among others the code of conduct, whistle blower procedures and incident registration. We
evaluated the design and the implementation of internal controls designed to mitigate fraud risks. Further, for certain
selected speak up cases, we evaluated management’s response and remedial actions and measures.
As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to financial reporting fraud,misappropriation of assets, bribery and corruption. We evaluated whether these factors indicate that a risk of material
misstatement due fraud is present.
The presumed significant risk on revenue recognition has been rebutted. The revenues of JDE Peet's N.V. arediversified in nature across the locations in which the group operates, and average revenues per transaction are
relatively low. Sales incentives and marketing accruals exist within the revenue recognition of the group as disclosed in
Note 2.2; there remains limited estimation uncertainty associated with these balances at the reporting date.
We identified the following fraud risks and performed the following specific procedures:
Presumed risk of management override of controls
We considered such risk in relation to management override of controls, including evaluating whether there wasevidence of bias by the Board or other members of management. Our procedures include an assessment of theselection and application of accounting policies by the group, particularly those related to subjective measurements
and complex transactions, as these may be indicative of fraudulent financial reporting. We tested the appropriatenessof journal entries recorded in the general ledger and other adjustments made in the preparation of the financial
statements.
We incorporated elements of unpredictability in our audit. We also considered the outcome of our other audit
procedures and evaluated whether any findings were indicative of fraud or non-compliance.
We considered available information and made enquiries of management, those charged with governance and others in
the group, including but not limited to, in-house legal teams, compliance officers, the Director of Internal Audit and theGroup Controller.
We evaluated whether the selection and application of accounting policies by the entity, particularly those related tosubjective measurements and complex transactions, may be indicative of fraudulent financial reporting.

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287

Other fraud risks identified
We evaluated whether the judgements and decisions made by management in making the accounting estimates
included in the financial statements indicate a possible bias that may represent a risk of material misstatement due tofraud. Management insights, estimates and assumptions that might have a major impact on the financial statements aredisclosed in Note 1.2 of the financial statements. We performed a retrospective review of management judgements andassumptions related to significant accounting estimates reflected in prior year financial statements. Impairment testingof intangible and fixed assets is a significant area to our audit as the determination whether these assets are not carriedat more than their recoverable amounts is subject to significant management judgement. We identified specific fraudrisks with respect to JDE Peet’s N.V. financial reporting in the areas of:• Goodwill and other intangible assets annual impairment assessment; and• The impairment recognized against the Jacobs brand intangible asset as a result of the withdrawal of the brandfrom Russia; and• The continued control (IFRS 10) of its Russian operations.
Reference is made to the section 'Our key audit matters', where we have further described the audit work performed tomitigate these risks as part of our audit.
For significant transactions, we evaluated whether the business rationale of the transactions suggests that they may
have been entered into to engage in fraudulent financial reporting or to conceal misappropriation of assets.

Audit approach compliance with laws and regulations
We assessed the laws and regulations relevant to the entity through discussion with amongst others, the Board, andGroup Legal Counsel, reading minutes of board meetings, reports of internal audit and discussions with our component
audit teams.
We differentiate our audit approach between two categories:• Rules and regulations that directly impact the financial reporting• Rules and regulations that indirectly may have material impact on the financial statements
In the first category, we considered adherence to (corporate) tax and pension laws and financial reporting regulations
including the requirements under International Financial Reporting Standards as adopted by the European Union (EUIFRS) and Part 9 of Book 2 of the Dutch Civil Code. These directly impact the financial statements and are integral to
our audit.

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We obtained sufficient appropriate audit evidence regarding provisions of those laws and regulations generally
recognized to have a direct effect on the financial statements.
In the second category, we considered other laws and regulations where the consequences of non-compliance could
have a material effect on amounts and/or disclosures in the financial statements, for instance, through imposed fines orlitigation. Examples of such other laws and regulations are those relating to anti-bribery and corruption, competitionand data privacy laws, human rights and sanctions associated with the war in Ukraine.
Our procedures are more limited with respect to laws and regulations that do not have a direct effect on thedetermination of the amounts and disclosures in the financial statements. Compliance with these laws and regulations
may however be fundamental to the operating aspects of the business, to JDE Peet’s N.V. ability to continue its
business, or to avoid material penalties and therefore non-compliance with such laws and regulations may have amaterial effect on the financial statements. Our responsibility for these matters that indirectly impact the financial
statement is limited to:i. inquiry with management, those charged with governance, group legal counsel, internal audit and others within JDE
Peets N.V.'s as to whether the JDE Peets N.V. is in compliance with such laws and regulations;ii. inspecting correspondence with the regulatory authorities to help identify non-compliance with those laws andregulations that may have a material effect on the financial statements;

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288

Our key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of thefinancial statements. We have communicated the key audit matters to the Board. The key audit matters are not acomprehensive reflection of all matters discussed.
In the prior year a key audit matter relating to Goodwill associated with the Out-of-Home segment was identified. IAS
36 requires that goodwill is tested annually for impairment at the lowest level at which goodwill is monitored for internalmanagement purposes, and not be larger than an operating segment. JDE Peet’s N.V. performs its impairment
assessment at an operating segment level. As a result of the combination of the CPG Europe and Out-of-Home
segments into one European segment ("Europe") (Note 2.1), JDE Peet’s N.V. no longer performs an impairment analysis
at the level of the legacy Out-of-Home segment.

We have obtained an understanding of the impact of the merger of the CPG Europe and Out-of-Home segments into
the Europe segment, and substantiated whether the internal management structure of the company has changed as aresult of the merger. We have performed procedures including inspecting management reporting packages utilized by
the Chief Operating Decision Maker (‘CODM’), evaluating changes to the organizational structure of the business,
substantiating expenses associated with the restructuring, and modifications to the structure of the budget in future
periods.

Naturally, we remained alert to indications of (suspected) non-compliance throughout the audit.
Finally, we obtained written representations that all known instances of (suspected) fraud or non-compliance with laws
and regulations have been disclosed to us.

Audit approach going concern
Our responsibilities, as well as the responsibilities of the Board, related to going concern under the prevailing standards
are outlined in the “Description of responsibilities regarding the financial statements” section below. In fulfilling our
responsibilities, we performed procedures including evaluating management’s assessment of the company’s ability tocontinue as a going concern and considering the impact of financial, operational, and other conditions. Based on theseprocedures, we did not identify any reportable findings related to the entity’s ability to continue as a going concern.
Management’s conclusion on the company's ability to continue as a going concern is outlined in the Statement of theBoard, and in Note 1.1 of the consolidated financial statements.

As a result of the above we have not identified a key audit matter with respect to uncertainty associated with the future
cashflows of the Out-of-Home segment.

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Goodwill and Other Intangible Assets Impairment Analysis - Significant Estimates and Judgements

Goodwill and Other Intangible Assets Impairment Analysis - Significant Estimates and Judgements

Key audit matter

How our audit
responded to the key
audit matter

As per December 31, 2023, the Group’s balance sheet includes EUR 12,300 million of goodwill (2022: EUR
12,366 million) and EUR 4,417 million of other intangible assets (2022: EUR 4,718 million), as disclosed in
Note 3.2 Goodwill and other intangible assets. Of this amount, the goodwill associated with the LARMEA
segment amounts to EUR 663 million (2022: EUR 673 million).

289

We have obtained an understanding of the internal processes including the Board approved budget andcontrols regarding management’s annual impairment test (including their use of third-party valuation
experts), how they arrived at their estimates and how they assessed the effect of estimation uncertainty.
In our audit we have evaluated the reasonableness of the applied valuation assumptions in the LARMEA
segment, the methodologies applied and the data used by the company.

As disclosed in Note 3.3, management performs an annual impairment test on goodwill and indefinite lived
brands and trademarks.

We have engaged internal valuation specialists to assist us in evaluating the discount rates and long-term
growth rates applied; this evaluation included benchmarking against independent external information andpeers in the industry.

The annual goodwill impairment test includes a variety of factors that require significant management
judgement for both key valuation assumptions (e.g. discount rates and long-term growth rate) andbusiness assumptions (e.g. forecasted revenue and operating results).

We paid specific attention to the sensitivity of possible outcomes of the valuation assumptions andevaluated various alternative scenarios addressing underlying uncertainties.

IAS 36 requires that goodwill is tested annually for impairment at the lowest level at which goodwill ismonitored for internal management purposes, and not be larger than an operating segment.

Throughout our procedures (and until the date of the financial statements) we have maintained a high levelof professional skepticism by, for example, remaining alert for indications of contradictory evidence,
including, amongst others, retrospective assessments.

Due to the volatility and uncertainty as a result of the ongoing war in Ukraine, there is an increased level of
estimation associated with the Russian country-risk premium. Being an important driver of the discountrate, this Russian country-risk premium increases the sensitivity of the 2023 impairment assessment of the
LARMEA segment. We note that a change in conclusion of control of JDE Peet’s N.V.’s Russian operations
would also impact our assessment. Refer to separate key audit matter below.

We have also assessed the adequacy of the company’s disclosure Note 3.3 in the JDE Peet’s N.V.
consolidated financial statements related to the impairment assessment, including whether sensitivities
and assumptions have been appropriately disclosed. Note 1.6 of the financial statements describes new
EU sanctions coming into effect from 20 June 2024 that may affect JDE Peet’s N.V.’s assessment
regarding control of its Russian operations in the financial year 2024 onwards thereby potentially impacting
the future cashflows in the LARMEA segment.
Observation

We observe that the annual test of goodwill was conducted in line with the requirements of the reporting
framework. The estimated recoverable amount for the LARMEA segment is negatively impacted by thesegment WACC rates which remained higher in 2023 than in the period precenting the war in Ukraine.
Based on our procedures we have not identified any reportable matters.
We have communicated the outcome of our procedures to those charged with governance.

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The impairment recognized against the Jacobs brand intangible asset as a result of the withdrawal of the brand from Russia– Significant Estimates and Judgements

The impairment recognized against the Jacobs brand intangible asset as a result of the withdrawal of the brand from Russia– Significant Estimates and Judgements

Key audit matter

How our audit
responded to the key
audit matter

As per December 31, 2023, the Group’s balance sheet includes an intangible asset of EUR 1,048 million(2022 EUR 1,233) associated with the Jacobs brand.
As disclosed in Note 1.6 and 3.3, in June 2023 the company announced its decision to transition theinternational Jacobs brand in the Russian market to Monarch.

We have obtained an understanding of the internal processes, including the Board approved budget andcontrols regarding management’s Jacobs’ impairment test (including their use of third-party valuation
experts), how they arrived at their estimates and how they assessed the effect of estimation uncertainty.
In our audit we have evaluated the reasonableness of the applied business and valuation assumptions, themethodologies applied and the data used by the company.

In line with IAS 36.10 and IAS 36.12, the company has assessed this decision to be an indicator for an
impairment, triggering a reassessment of the recoverable value of the Jacobs intangible asset. This led toan impairment of EUR 185 million in the first half year of 2023, which has been recorded in the Russian
CGU as part of the LARMEA segment.

We have engaged internal valuation specialists to assist us in evaluating the discount rates, long term
growth rates and royalty rates applied; this evaluation included benchmarking against independent external
information.

The impairment assessment performed in June 2023, includes a variety of factors that require significant
management judgement, for both key valuation assumptions (e.g. discount rates, long term growth rates
and royalty rates) and business assumptions (e.g. revenue and operating results).

In relation to the business assumptions, we have evaluated management’s judgements and estimates
related to forecasted cashflows of the Jacobs brand by comparing the business assumptions to historic
performance, future outlooks, analyst reports and market outlook, and other relevant data.
Furthermore, we have assessed whether there has been an indication for an additional impairment on the
Jacobs trademark as per the annual impairment test on September 30, 2023, by evaluating whether there
has been significant changes to the valuation and business assumptions as applied in the impairment test
per June 2023.
Throughout our procedures (and until the date of the financial statements) we have maintained a high levelof professional skepticism by, for example, remaining alert for indications of contradictory evidence,
including, amongst other, retrospective assessments.
We have also assessed the adequacy of the company’s disclosure in Note 1.6 and 3.3 in the JDE Peet’s
N.V. consolidated financial statements related to the impairment assessment, including whether
sensitivities and assumptions have been appropriately disclosed.
Observation

Based on our procedures performed and our assessment of the disclosures made, we have not identified
any reportable matters. Our audit procedures are deemed appropriate and sufficient to address the risk ofmaterial misstatements related to the Jacobs impairment.
We have communicated the outcome of our procedures to those charged with governance.

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at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

JDE Peet’s N.V. assessment of continued control of its Russian operations – Significant Judgement
IFRS 10 sets out that an investor has control over another entity if and only if the investor has all of thefollowing elements:• power over the investee, i.e. the investor has existing rights that give it the ability to direct the relevant
activities (the activities that significantly affect the investee's returns)• exposure, or rights, to variable returns from its involvement with the investee• the ability to use its power over the investee to affect the amount of the investor's returns.

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JDE Peet’s N.V. assessment of continued control of its Russian operations – Significant Judgement
How our audit
responded to the key
audit matter

We have inspected the company’s evaluation of the requirements of IFRS 10; with specific reference tothose elements of control as required by the reporting framework. The timing of our procedures wasincreased to reflect the dynamic nature of developments in the year, including developments in theinternational sanction environment over the course of the year.
We have evaluated the company’s direction of the activities of its Russian operations throughout the year,
including group management’s interactions with local Russian management teams and the impact of suchinteractions on the activity of the Russian business.

In the year ended 31 December 2023, the company has concluded that it continued to retain control overits Russian operations, and as such the company has continued to consolidate the results and financial
position of its Russian operations throughout the period.

We have made specific inquiries with the company internal and external legal counsel with reference to theGroup’s continued exposure, or rights, to variable returns and the impact from evolving sanctions. These
inquiries included consideration of the company’s ability to obtain dividends from Russia, and the impactof relevant sanctions.

As a result of the war in Ukraine, and increased complexity associated with conducting business in Russia
for foreign-owned groups, significant judgement exists as to whether these elements are satisfied and thecompany is able to continue to consolidate the results and financial position of its Russian operations.
Russian operations amounts to 5% of the consolidated revenue of the group and 1% of the total assets ofthe group.

The procedures performed centrally have been supported by collaboration with the Russian component
auditor.
Throughout our procedures we have maintained a high level of professional skepticism by, for example,
remaining alert for indications of contradictory evidence.

The company has disclosed this significant judgement in Note 1.6 to the consolidated financial statements.

We have also assessed the adequacy of the company’s disclosure in Notes 1.2 and 1.6 of the consolidated
financial statements outlining the situation and the judgements of management.
We draw attention to Note 1.6 of the consolidated financial statements, which describes new EU sanctions
coming into effect from 20 June 2024. The company has highlighted that certain aspects of thesesanctions may affect JDE Peet’s N.V.’s assessment regarding control of its Russian operations in thefinancial year 2024 onwards.
Observation

Based on our procedures performed and our assessment of the disclosures made, we have not identified
any reportable matters. Our audit procedures are deemed appropriate and sufficient to address the risk ofmaterial misstatements related to control over the Russian operations of JDE Peet’s N.V.
We have communicated the outcome of our procedures to those charged with governance.

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REPORT ON THE OTHER INFORMATION INCLUDED IN THE 2023 ANNUALREPORTIn addition to the financial statements and our auditor's report thereon, the 2023 annual accounts contain otherinformation.
The other information consists of:• Management Board's Report as defined in section Reporting frameworks and legal disclosures in this Annual
Report• Report of the non-executive Directors.
• Remuneration Report.
• Other Information as required by Part 9 of Book 2 of the Dutch Civil Code.
Based on the following procedures performed, we conclude that the other information:• Is consistent with the financial statements and does not contain material misstatements.
• Contains all the information as required by Part 9 of Book 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and understanding obtained through our audit of thefinancial statements or otherwise, we have considered whether the other information contains material misstatements.
By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and theDutch Standard on auditing 720. The scope of the procedures performed is substantially less than the scope of those
performed in our audit of the financial statements.
Management is responsible for the preparation of the other information, including the Management Board’s Report inaccordance with Part 9 of Book 2 of the Dutch Civil Code, and the other information as required by Part 9 of Book 2 of
the Dutch Civil Code.

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REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS AND ESEF
Engagement
We were engaged by the shareholders as auditor of JDE Peet’s N.V. on May 25, 2020, as of the audit for the year
ended December 31, 2020 and have operated as statutory auditor ever since that financial year.

No prohibited non-audit services
We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specificrequirements regarding statutory audit of public-interest entities.

European Single Electronic Format (ESEF)JDE Peet’s N.V. has prepared its annual report in ESEF. The requirements for this are set out in the DelegatedRegulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic
reporting format (hereinafter: the RTS on ESEF).
In our opinion, the annual report, prepared in XHTML format, including the (partly) marked-up consolidated financial
statements, as included in the reporting package by JDE Peet’s N.V. complies in all material respects with the RTS on
ESEF.
Management is responsible for preparing the annual report including the financial statements in accordance with the
RTS on ESEF, whereby management combines the various components into one single reporting package.
Our responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package
complies with the RTS on ESEF.
We performed our examination in accordance with Dutch law, including Dutch Standard 3950N 'Assurance-opdrachten
inzake het voldoen aan de criteria voor het opstellen van een digitaal verantwoordingsdocument' (assurance
engagements relating to compliance with criteria for digital reporting).

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Our examination included amongst others:• Obtaining an understanding of the company's financial reporting process, including the preparation of the reporting
package.
• Identifying and assessing the risks that the annual report does not comply in all material respects with the RTS on
ESEF and designing and performing further assurance procedures responsive to those risks to provide a basis forour opinion, including:– obtaining the reporting package and performing validations to determine whether the reporting package
containing the Inline XBRL instance and the XBRL extension taxonomy files has been prepared in accordancewith the technical specifications as included in the RTS on ESEF;– examining the information related to the consolidated financial statements in the reporting package to determine
whether all required mark-ups have been applied and whether these are in accordance with the RTS on ESEF.

Our responsibilities for the audit of the financial statements

DESCRIPTION OF RESPONSIBILITIES REGARDING THE FINANCIAL
STATEMENTS

We have exercised professional judgement and have maintained professional scepticism throughout the audit, in
accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit
included, amongst others:• Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or
error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control.
• Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of thecompany's internal control.
• Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.
• Concluding on the appropriateness of management's use of the going concern basis of accounting, and based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor's report. However, future events or conditions may cause the company tocease to continue as a going concern.
• Evaluating the overall presentation, structure and content of the financial statements, including the disclosures.

Responsibilities of management and the Board for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with EUIFRS and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, management is responsible for such internal control as
the Board determines is necessary to enable the preparation of the financial statements that are free from material
misstatement, whether due to fraud or error.
As part of the preparation of the financial statements, management is responsible for assessing the company's ability
to continue as a going concern. Based on the financial reporting frameworks mentioned, management should prepare
the financial statements using the going concern basis of accounting unless management either intends to liquidate thecompany or to cease operations, or has no realistic alternative but to do so.
Management should disclose events and circumstances that may cast significant doubt on the company's ability tocontinue as a going concern in the financial statements.
The Board is responsible for overseeing the company's financial reporting process.

Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient andappropriate audit evidence for our opinion.
Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect allmaterial errors and fraud during our audit.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified
misstatements on our opinion.

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Evaluating whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.

Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing
the group audit. In this respect we have determined the nature and extent of the audit procedures to be carried out forgroup entities. Decisive were the size and/or the risk profile of the group entities or operations. On this basis, weselected group entities for which an audit or review had to be carried out on the complete set of financial information or
specific items.
We communicate with the board regarding, amongst other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant findings in internal control that we identified during our audit. In thisrespect we also submit an additional report to the audit committee in accordance with Article 11 of the EU Regulation
on specific requirements regarding statutory audit of public-interest entities. The information included in this additional
report is consistent with our audit opinion in this auditor's report.
We provide the Board with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought tobear on our independence, and where applicable, related safeguards.
From the matters communicated with the Board, we determine the key audit matters: those matters that were of mostsignificance in the audit of the financial statements. We describe these matters in our auditor's report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, not communicating
the matter is in the public interest.
Amsterdam, March 6, 2024
Deloitte Accountants B.V.

Signed on the original:

M.J. van der Vegte

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LIMITED ASSURANCE REPORT OF THE INDEPENDENT AUDITOR ON
JDE PEET’S N.V. SELECTED SUSTAINABILITY KPIs
To: the shareholders and the Board of JDE Peet’s N.V.
Our conclusion
We have examined selected key performance indicators (further: “KPIs”), as described below, and presented as part ofthe sustainability report as stated in the Basis of preparation section in the accompanying Annual Report for the year
2023 of JDE Peet’s N.V. based in Amsterdam. A review is aimed at obtaining a limited level of assurance.
Based on our procedures performed nothing has come to our attention that causes us to believe that the KPIs are notprepared, in all material respects, in accordance with the reporting criteria as included in the section ‘Reporting Criteria’of our report.
The scope of our review was to provide limited assurance on the following KPIs for the year 2023 as disclosed in theBasis of preparation section in the Annual Report, namely:
Common Ground Pillar

KPI name

Responsible Sourcing

1. % of responsible sourced green coffee

The information in scope of this assurance report needs to be read and understood in conjunction with the Basis ofPreparation of non-financial indicators as included in the Annual Report 2023 in the Reporting period and scopings,
Data quality and Basis of preparation sections.

Basis for our conclusion
We have performed our examination in accordance with Dutch law, including Dutch Standard 3000A ‘Assuranceopdrachten anders dan opdrachten tot controle of beoordeling van historische financiële informatie’ (Assurance
engagements other than audits or reviews of historical financial information). This engagement is aimed at obtaining
limited assurance. Our responsibilities under this standard are further described in the ‘Our responsibilities for theexamination of the KPIs’ section of our report.
We are independent of JDE Peet’s N.V. in accordance with the ‘Verordening inzake de onafhankelijkheid vanaccountants bij assurance-opdrachten’ (ViO, Code of Ethics for Professional Accountants, a regulation with respect toindependence) and other relevant independence regulations in The Netherlands. This includes that we do not perform
any activities that could result in a conflict of interest with our independent assurance engagement. Furthermore wehave complied with the ‘Verordening gedrags- en beroepsregels accountants’ (VGBA, Dutch Code of Ethics).

2. % of responsibly sourced tea
3. % of responsibly sourced palm oil
4. % of deforestation-free virgin pulp & paper

We believe that the assurance evidence we have obtained is sufficient and appropriate to provide a basis for ourconclusion.

5. Number of new smallholder farmers reached in 2023
Minimising Footprint

6. Packaging Intensity

Reporting criteria

7. % of packaging components designed to be reusable, recyclable, orcompostable

The reporting criteria used for the preparation of the KPIs are disclosed in the annual report sections the Reporting
period and scopings, Data quality and Basis of preparation. The comparability of KPIs between entities and over time
may be affected by the absence of an uniform practice on which to draw, to evaluate and measure this information.
This allows for the application of different, but acceptable, measurement techniques.

8. % of (absolute) reduction of scope 1 & 2 GHG emissions
9. Absolute Scope 3 emissions (in tCO2e)
10. % of water intensity reduction
11. Maintain waste to landfill under 1%
Connecting People

Consequently, the KPIs need to be read and understood together with the reporting criteria used.

12. % of women in leadership positions
13. % of manufacturing facilities with food-safety certifications

Limitations to the scope of our review

14. Total Recordable Incidents Rate

The sustainability information includes prospective information such as ambitions, strategy, plans, expectations andestimates. Inherent to this prospective information is future results which are uncertain. We do not provide any
assurance on the assumptions and achievability of prospective information in the sustainability information.

15. Voluntary turnover rate in leadership positions

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In the sustainability information, the calculations to determine KPIs are partly based on assumptions and sources fromthird parties. The assumptions and sources used are disclosed in the Basis of preparation section of the annual report.
We have reviewed that these assumptions and external sources are appropriate, but we have not performed
procedures on the content of these assumptions and external sources. Also we note that in accordance with thereporting criteria we evaluate whether compliance of a KPI is substantiated by either a third-party verification or otherinformation provided by third parties for example evidenced by a certificate or confirmation (together: “third party info”).
For example, in the Basis of preparation section, the Company highlights that the basis of preparation is reliant on
confirmations from suppliers that individual materials supplied fall under FSC and PEFC certification schemes. We havenot performed any procedures on the objectivity or competence of the third party or its processes underpinning thisthird party info.
The references to external sources or websites in the sustainability information are not part of the sustainability
information as included in the scope of our assurance engagement. We therefore do not provide assurance on thisinformation.

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Responsibilities of the Board for the KPIs
The Board of the Company is responsible for the preparation of the KPIs in accordance with the reporting criteria as
included in the ‘Reporting Criteria’ section, including the identification of the intended users and the definition ofmaterial matters. The Board is also responsible for selecting and applying the reporting criteria and for determining thatthese reporting criteria are suitable for the legitimate information needs of stakeholders, taking into account applicablelaw and regulations related to reporting. The choices made by the Board regarding the scope of the KPIs and thereporting policy are summarised in the Reporting period and scopings, Data quality and Basis of preparation sectionsof the annual report.
Furthermore, the Board is responsible for such internal control as it determines is necessary to enable the preparationof the KPIs that are free from material misstatement, whether due to fraud or errors.
The Board is responsible for overseeing the reporting process of JDE Peet’s N.V.

Our responsibilities for the review of the KPIs
Our conclusion is not modified in respect to these matters.

Our responsibility is to plan and perform the limited assurance assignment in a manner that allows us to obtainsufficient and appropriate evidence for our conclusion.
Procedures performed to obtain a limited level of assurance are aimed to determine the plausibility of information andvary in nature and timing from, and are less in extent, than for a reasonable assurance engagement. The level ofassurance obtained in review is therefore substantially less than the assurance obtained in an audit.
We apply the ‘Nadere voorschriften kwaliteitssystemen’ (NVKS, Regulations for quality management systems) andaccordingly maintain a comprehensive system of quality control including documented policies and procedures
regarding compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
We have exercised professional judgement and have maintained professional scepticism throughout the review, in
accordance with the Dutch Standard 3000A, ethical requirements and independence requirements.

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Our review included among others:• Performing an analysis of the external environment and obtaining an understanding of relevant social themes andissues, and the characteristics of the company including a media search to identify relevant risks and issues within
the scope of the assurance engagement during the reporting period.
• Evaluating the appropriateness of the reporting criteria used, their consistent application and related disclosures for
the KPIs. This includes the evaluation of the results of the stakeholders’ dialogue and the reasonableness of
estimates made by the Executive board.
• Obtaining through inquiries a general understanding of the control environment, processes and information systems
relevant to the preparation of the KPIs, but not to obtain assurance evidence about their implementation or theiroperating effectiveness.
• Obtaining an understanding of the procedures performed by the internal audit department.
• Identifying areas of KPIs with a higher risk of misleading or unbalanced information or material misstatements,
whether due to errors of fraud. Designing and performing further assurance procedures aimed at determining theplausibility of the sustainability information responsive to this risk analysis. These procedures consisted, amongst
others, of:– interviewing management responsible for the sustainability strategy, policy and results;– interviewing relevant staff responsible for providing the information for, carrying out internal control procedureson, and consolidating the data for the KPIs;– obtaining assurance information that the sustainability information reconciles with underlying records of thecompany;– reviewing, on a limited test basis, relevant internal and external documentation;– performing an analytical review of the data and trends.
• Evaluating the consistency of the KPIs with the information in the annual report which is not included in the scope ofour review.
• Evaluating the presentation, structure and content of the sustainability data;• Considering whether the sustainability information as a whole, including the disclosures, reflects the purpose of thereporting criteria used.

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We communicate with the Board regarding, among other matters, the planned scope and timing of the review andsignificant findings, if any, that we identify during our review.
Amsterdam, March 6, 2024
Deloitte Accountants B.V.

Signed on the original:

M.J. van der Vegte

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SUPPLEMENTARYINFORMATION
Investor relations

299

Forward-looking statements

303

Glossary304

Introduction

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INVESTOR RELATIONSINVESTOR RELATIONS POLICYINFORMATION ABOUT THE SHARES AND THE SHAREHOLDER BASEJDE Peet’s is committed to supporting investors and analysts become better acquainted with JDE Peet’s and its
management. We are also dedicated to maintaining a long-term relationship of trust with the investment community atlarge, while complying with applicable rules and regulations on fair disclosure. To ensure this, we have put in place adetailed communication programme to maintain proper communication with (potential) shareholders and analysts.
Events related to Investor Relations are available in the Financial Calendar section on our corporate website.

JDE Peet’s was listed and began trading on the Euronext Amsterdam stock exchange on 29 May 2020 under the ticker“JDEP” and ISIN code NL0014332678. Options on JDE Peet’s ordinary shares began trading on the European Option
Exchange in Amsterdam (Euronext.Liffe) on 14 August 2020. JDE Peet’s is included in various indices, such as the
MSCI Standard Developed Europe index, the STOXX index, and the Euronext AMX midcap index.

Consistent with JDE Peet's' Policy on Bilateral Contacts with Investors and Analysts, no meetings with (potential)
shareholders or equity analysts will be held in a pre-defined period between the end of the reporting period and thedates at which the semi-annual and annual results are published. During these periods, the company refrains frommaking presentations at financial conferences, or one-on-one meetings with equity analysts or investors. Exceptions
may apply, for example, if communication relates to factual clarifications of previously disclosed information.

SHAREHOLDER ENGAGEMENT
We attach great value to maintaining an open dialogue with shareholders, investors and analysts. This promotes
transparency and enables us to receive valuable feedback. Moreover, we apply an active investor relations approach
aimed at supporting the company’s long-term ambitions by keeping (potential) shareholders and analysts well-informed
about our strategy and the latest operational and financial developments. JDE Peet’s reports a full set of financial
results on a semi-annual basis, supported by conference calls for analysts and institutional investors, to discuss theseresults, which can be accessed and replayed on the Investor Relations website.
JDE Peet’s also conducts extensive investor outreach throughout the year, involving members of the Investor Relations
team and members of the Global Leadership team, to ensure that areas of interest which matter most to (potential)
shareholders can be addressed effectively.

On 31 December 2022, the total number of issued ordinary shares in the share capital of JDE Peet’s amounted to502,745,857. On 28 July 2023, the company cancelled 15.3 million of its treasury shares. As a result, the total number
of issued ordinary shares in the share capital of JDE Peet’s amounted to 487,445,857 on 31 December 2023.
On 31 December 2023, Acorn Holdings B.V. held 287,981,738 ordinary shares, and Mondelez International Holdings
Netherlands B.V. held 85,876,095 ordinary shares of the company's total shares outstanding. These two holdings
together represented 77% of the company's total shares outstanding, resulting in a free float of 23% on 31 December
2023. These percentages are regularly updated in the Share Info section of JDE Peet’s’ investor relations website.
The Dutch Financial Supervision Act requires institutions and individuals holding a (potential) capital and/or votinginterest of 3% or more in JDE Peet's, to disclose such to the Netherlands Authority for the Financial Markets (AFM). The
AFM processes these disclosures in its publicly available register, which can be found at www.afm.nl. Based on thefilings to the AFM, and to the best of our knowledge, on 31 December 2023, shareholders with (potential) holdings of
3% or more were Agnaten SE, Lucresca SE, Mondelez International Inc. and Mawer Investment Management Ltd.

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The following graph depicts the evolution of JDE Peet’s' share price and volumes traded since the start of 2023.

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CAPITAL ALLOCATION POLICYJDE Peet’s’ capital allocation framework guides the company in the creation of long-term value for its shareholders.
The company has a disciplined approach to capital allocation, with the aim of generating an ecosystem of growth,financial flexibility, and returns. It is on the foundation of these principles that JDE Peet’s established the following
capital allocation priorities, in decreasing order of importance:
1. Investing behind the organic growth opportunities within its existing businesses — These investments are
made in JDE Peet's' portfolio of brands and appliances, capabilities, environmental and social ambitions, and thecompany's talent, which are crucial to support the long-term growth and health of its businesses.
2. Deleveraging — JDE Peet’s targets an optimal leverage of around 2.5 times net-debt to adjusted EBITDA. Since
2019, the company has significantly reduced its debt level. At the end of 2023, the company’s leverage stood at
2.73 times net debt to adjusted EBITDA.

The average daily trading volume in JDE Peet’s' shares at Euronext Amsterdam in 2023 was 245,572 shares, compared
to 309,466 shares in 2022.
On the basis of a total number of issued ordinary shares of 487,445,857 and the closing share price on 31 December
2023 of EUR 24.36, JDE Peet’s' market capitalisation was EUR 11.9 billion at the end of 2023.

3. Inorganic growth opportunities — JDE Peet’s continues to consider inorganic opportunities, such as M&A andpartnerships, as part of the company’s growth agenda. However, while JDE Peet’s’ leverage is above its optimal
leverage of around 2.5 times, the company will not prioritise transformational cash or debt-funded acquisitions.
4. Return of cash to shareholders through dividends — JDE Peet’s expects its excess cash to contribute toshareholder remuneration by aiming for a stable or increasing dividend per share, while the pace will be determinedby the company’s capital allocation priorities. More information on dividends can be found in the company’s
dividend policy below.
5. Share repurchases — JDE Peet’s will not consider share repurchases while the company’s leverage is above its
optimal level of around 2.5 times. JDE Peet’s will assess market dynamics while managing its prioritisation.

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DIVIDEND POLICY AND PROPOSED DIVIDENDANNUAL GENERAL MEETING 2024

The Dividend Policy of JDE Peet’s intends to preserve the independence of the company and maintain a healthyfinancial structure. Dividend distribution will be done in a prudent and disciplined manner, ensuring that the company
retains sufficient earnings to fulfil its first three capital allocation priorities, which are key to the sustainable developmentof the business. The ability and intention of the company to declare and pay dividends in the future will mainly dependon its financial position, results of operations, capital requirements, investment prospects, the existence of distributablereserves and available liquidity, and such other factors as the Board may deem relevant; and are subject to factors thatare beyond the company's control. Subject to the aforementioned limitations, the company intends to provide a stable
or increasing dividend per share, while the pace will be determined by the company’s capital allocation priorities. These
dividends will be paid in two equal instalments.

The AGM is scheduled for Thursday 30 May 2024. The agenda and the explanatory notes to the agenda will be
published on the company’s corporate website.

JDE Peet's' Board proposes to pay a dividend of EUR 0.70 per share in cash related to 2023. The dividend will be paidin two instalments of EUR 0.35 each. The first payment date will be on Friday 12 July 2024, with the ex-dividend dateon Monday 8 July 2024 and the record date on Tuesday 9 July 2024. The second payment date will be on Friday 24
January 2025, with the ex-dividend date on Monday 20 January 2025 and the record date on Tuesday 21 January
2025. The dividend proposal is subject to approval by the Annual General Meeting of Shareholders to be held on
Thursday 30 May 2024. More information on the upcoming AGM can be found in the next section.
Dividend in cash is, in principle, subject to 15% Dutch dividend withholding tax, which will be deducted from thedividend in cash paid to shareholders. A shareholder's claim to payments of dividends lapses five years after the dayon which the claim became payable. Any dividends that are not collected within this period revert to the company.

FINANCIAL CALENDAR 2024 and 2025
2024
Annual General Meeting of Shareholders

30 MayEx-dividend date (first instalment)

8 JulyDividend record date (first instalment)

9 JulyDividend payment date (first instalment)

12 JulyFirst-half results 2024

31 July

2025
Ex-dividend date (second instalment)

20 January

Dividend record date (second instalment)

21 January

Dividend payment date (second instalment)

24 January

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Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

ADDITIONAL INFORMATION & CONTACTJDE Peet’s' corporate website provides comprehensive information about the company and its shares, including
company announcements, annual and semi-annual reports, financial data, investor presentations, webcasts andtranscripts, and a financial calendar. At the end of 2023, JDE Peet’s was covered by 13 equity analysts. The analysts'
names and consensus estimates can also be found on the website.

CONTACT
Shareholders, investors and equity analysts are invited to contact Investor Relations with any information requests theyhave:

JDE PEET’S INVESTOR RELATIONS
IR@JDEPeets.com+31 20 558 1212

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JDE Peet's N.V.
Annual Report 2023

JDE Peet’s
at a glance

Introduction

Strategy andvalue creation

Performance review
and outlook

FORWARD-LOOKING STATEMENTS
This report includes forward-looking statements. These forward-looking statements are subject to a number of risks
and uncertainties, many of which are beyond our control and all of which are based on our current beliefs andexpectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking
terminology such as “aim”, “annualised”, “anticipate”, “assume”, “believe”, “continue”, “could”, “estimate”, “expect”,“goal”, “hope”, “intend”, “may”, “objective”, “plan”, “position”, “potential”, “predict”, “project”, “risk”, “seek”, “should”,“target”, “will” or “would” or the highlights or the negatives thereof, other variations thereon or comparable terminology.
These forward-looking statements include all matters that are not historical facts. These forward-looking statements
and other statements contained in this report regarding matters that are not historical facts involve predictions. No
assurance can be given that such future results will be achieved; actual events or results may differ materially as aresult of risks and uncertainties facing us. Such risks and uncertainties could cause actual results to vary materiallyfrom the future results indicated, expressed or implied in such forward-looking statements. Forward-looking statementsin this report speak only as of the date of this report. Except as required by applicable laws and regulations, we
expressly disclaim any obligation or undertaking to update or revise the forward-looking statements contained in thisreport to reflect any change in our expectations or any change in events, conditions or circumstances on which suchstatements are based.

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Annual Report 2023

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Introduction

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Performance review
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GLOSSARY
SELECTED INDUSTRY AND
COMPANY-SPECIFIC TERMS
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Away-from-Home: coffee & tea products
purchased for consumption outside of the home atoffices, hotels, bars, restaurants etc. as well as incoffee stores.
Carbon footprint: the amount of carbon dioxide
released into the atmosphere as a result of theactivities of a particular individual, organisation, orcommunity or the manufacturing, use and disposalof a product.
Certified or verified: coffee or tea that a third party(for example, the Rainforest Alliance or Ethical Tea
Partnership) has independently certified or verified
as meeting its sustainability requirements.
The Coffee Sustainability Reference Code: provides
a foundation to support the primary principles ofsustainable coffee production. This reference code
offers a common language to enable farmers,
producer organisations and their business partners,
as well as donors, NGOs, financial institutions andgovernments to advance their coffee sustainability
efforts, collaboratively and effectively.
Developed market: developed economies as
defined by the United Nations Conference on Tradeand Development (Development Status Groups andComposition, 12 July 2019).
Direct (Scope 1) GHG emissions: The sum of all
on-site GHG emissions at JDE Peet’s'
manufacturing facilities which arise from combustion
processes used to manufacture products. These••

GHG emissions can result from burning of fuels inboilers, roasters, dryers or from electric generators.
This indicator corresponds to Scope 1 of the GHG
Protocol. GHG included in the calculation are CO2,
CH4, N2O, HFCs, PFCs, SF6 and NF3. The CO2
equivalents from refrigerants losses were deemed
immaterial and are excluded. Emissions arecalculated using fuel-specific factors from DEFRA
and IEA and purchased energy quantities. Biogenic
emissions from the combustion of spent coffee
grounds and other biomass are assumed to be zero.
The consolidation follows the operational control
method outlined in the ‘GHG Protocol Corporate
Standard'.
Emerging markets: transition economies anddeveloping economies as defined by the United
Nations Conference on Trade and Development(Development Status Groups and Composition, 12
July 2019).
Energy indirect (Scope 2) GHG emissions: GHG
emissions arising from the generation of electricity,
heating, cooling and steam which is purchased by
JDE Peet’s manufacturing facilities or otherwise
brought into our organisational boundaries. The
emissions physically occur at the facility where theelectricity, heating/cooling carriers or steam are
generated. Publicly available country-specificdefault factors or supplier-specific factors whenavailable are used to calculate this from thepurchased energy quantities. This indicator
corresponds to Scope 2 of the GHG Protocol. GHG
included in the calculation are CO2, CH4, N2O,
HFCs, PFCs, SF6 and NF3.

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Energy intensity ratio: the energy used for the
manufacturing of our products at our manufacturing
facilities, including all fuels, electricity, heating,cooling and steam, in gigajoules per tonne ofproduction.
Enveritas: a nonprofit that provides sustainability
assurance for the coffee industry.
Fairtrade: a leader in the global movement to maketrade fair, the organisation supports and challenges
businesses and governments and connects farmers
and workers with the people who buy their products.
4C: an independent, stakeholder-driven,internationally recognised sustainability standard forthe coffee sector.
GHG intensity ratio: The GHG emissions arisingfrom the complete value chain in tonnes of CO2e
per tonne of production. This covers direct (Scope1), energy indirect (Scope 2 market based), andindirect value chain (Scope 3) GHG emissions.
Glyphosate: a widely used herbicide that controls
broadleaf weeds and grasses.
Green coffee: raw coffee beans that have not beenroasted.
In-Home: packaged coffee & tea products
purchased for consumption at home.
MSU: Marketing sales unit (our markets, so retailand away-from-home in some countries).
MU: Manufacturing unit (our factories/plants).
Multi-serve: coffee products for multi-cup use, as
opposed to single-cup use.
NFRD: the Non-Financial Reporting Directive which
lays down the rules on disclosure of non-financial
and diversity information by large companies.

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One Planet Business for Biodiversity (OP2B): aninternational cross-sectorial, action-oriented
business coalition on biodiversity with a specificfocus on agriculture.
Out-of-Home: coffee & tea products purchased for
consumption outside of the home through our Outof-Home coffee solutions.
Pay equity-gap: The average difference between
the pay of all men and all women, after taking into
account factors such as the level of each role andpay differences by work location.
Playbooks: we use playbooks across the company,
and they contain processes, policies, and operatingprocedures relevant to specific departments.
Rainforest Alliance: an international nongovernmental organisation working to create a moresustainable world by using social and market forces
to protect nature and improve the lives of farmers
and forest communities.
Ready-to-drink: beverages that are sold in a
prepared form, ready for consumption by
consumers.

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JDE Peet’s
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Responsibly sourced green coffee87: Responsibly
sourced green coffee covered by a sustainability
scheme recognised by the coffee industry, such as
GCP Equivalence Mechanism, including, Enveritas,
Rainforest Alliance, 4C, Fairtrade, etc.
Responsible sourced palm oil87: Direct responsibly
sourced palm oil refers to the purchased palm oilwith Roundtable on Sustainable Palm Oil (RSPO)
certification.
Responsibly sourced tea87: Responsibly sourcedtea (Camellia sinensis) and rooibos (Aspalathus
linearis) refer to the tea (processed tea fromsensitive origin) and rooibos purchased or
manufactured by JDE Peet’s for which the supplierhas been independently audited by a recognised
third party as meeting its sustainability
requirements. These third parties may include, but
are not limited to, Rainforest Alliance/UTZ, Fairtrade,
ETP, Enveritas, etc.
RSPO (Roundtable on Sustainable Palm Oil): aims
to promote the growth and use of sustainable palm
oil products through global standards andmultistakeholder governance.
SBTi (Science Based Targets initiative): Definesand promotes best practice in emissions reduction
and net-zero targets in line with climate science.
Provides technical assistance and expert resources
to companies who set science-based targets in linewith the latest climate science.
SBTN (Science Based Targets Network): a groupof organisations working to shape private sector andIntroduction

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Strategy andvalue creation

Performance review
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city impacts on nature by using science-basedtargets.
Scope 1 GHG emissions: The sum of all on-site
GHG emissions at JDE Peet’s' manufacturing
facilities which arise from combustion processes
used to manufacture products. This indicator
corresponds to Scope 1 of the GHG Protocol. GHG
included in the calculation are CO2, CH4, N2O,
HFCs, PFCs, SF6 and NF3.
Scope 2 GHG emissions: GHG emissions arisingfrom the generation of electricity, heating, coolingand steam which is purchased by JDE Peet’s
manufacturing facilities or otherwise brought into
our organisational boundaries. This indicator
corresponds to Scope 2 of the GHG Protocol. GHG
included in the calculation are CO2, CH4, N2O,
HFCs, PFCs, SF6 and NF3.
Scope 3 GHG emissions: are the result of activities
from assets not owned or controlled by the reportingorganisation, but that the organisation indirectly
affects in its value chain. Scope 3 emissions include
all sources not within an organisation's Scope 1 and2 boundary. These cover both upstream anddownstream value chains, and are reported in linewith the GHG protocol, using the operational control
approach
Sedex (Supplier Ethical Data Exchange): thelargest collaborative platform for sharing ethicalsupply chain data.
Smallholder farmer: small-scale agricultural
producers that primarily rely on family or household

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labour or workforce exchange with other membersof the community
SHE Expert: Safety, Health and Environmental
Expert..
Single-serve: coffee products for single-cup use, as
opposed to multi-cup use.
The Taskforce on Climate-related Financial
Disclosures (TCFD): a market-led, science-based
and government-backed initiative providingorganisations with the tools to act on evolving
climate-related issues.
The Taskforce on Nature-related Financial
Disclosures (TNFD): a market-led, science-based
and government-backed initiative providingorganisations with the tools to act on evolving
nature-related issues.
Volume: servings of coffee that can be made fromvarious forms of coffee products.
Waste intensity ratio: The waste generated in the
manufacturing of our products at our manufacturing
facilities in tonnes per tonne of production. Volumes
are typically based on recorded volumes by a third
party managing the waste.
Water stressed areas: Locations for which WRI's
Aqueduct Water Risk Atlas tool shows Baseline
Water Stress as high or extremely high.
Water withdrawal ratio: The water withdrawal (incubic meter) required to make one tonne of product.
World Environment Day: An annual platform forenvironmental public outreach led by the United
Nations Environment Programme (UNEP)

As used in this Annual Report, a product or material which is “responsibly sourced” means that such product or material satisfies the applicable definition contained in the section BASIS OF PREPARATION of the Annual Report.

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SELECTED ABBREVIATIONS

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AGM: Annual General Meeting of Shareholders
APAC: Asia Pacific
CHRO: Chief Human Resources Officer
CO2e: Carbon dioxide equivalent, a standard unit
for measuring GHG emissions
CPG: Consumer packaged goods
COSO: Committee of Sponsoring Organizations of
the Treadway Commission
DSD: Direct store delivery
EBIT: Earnings before interest and tax
ERM: Enterprise risk management
ERP: Enterprise resource planning
ESG: Environmental, social and governance
ETP: The Ethical Tea Partnership
FMCG: Fast Moving Consumer Goods
GAIN: Global Alliance for Improved Nutrition
GCC: Global Compliance Council
GCP: Global Coffee Platform
GHG: Greenhouse gas
GRI: Global Reporting Initiative, an organisation thatpublishes international standards for non-financial
reporting
HACCP: Hazard Analysis and Critical Control Point
ICO: The International Coffee Organization
ICS: Internal Control Supervisor
IDH: The Sustainable Trade Initiative
IFRS: The International Financial ReportingStandards
IIRC: International Integrated Reporting Council
ILO: The International Labour Organisation

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IPCC: The Intergovernmental Panel on Climate
Change, the United Nations body for assessing thescience related to climate change
IPO: Initial Public Offering
LCA: Life Cycle Analysis
LARMEA: Latin America, Eastern Europe, Middle
East and Africa
OP2B: The One Planet Business for Biodiversity
coalition
PPP: Public-private partnership
QMS: Quality Management System
RSPO: Roundtable on Sustainable Palm Oil
S&OP: Standardised sales and operation planning
SBTi: the Science Based Target initiative
SCC: The Sustainable Coffee Challenge
SDGs: The United Nations Sustainable Development
Goals
SKU: Stock keeping unit
TCFD: Task Force on Climate-related Financial
Disclosures
TNFD: Task Force on Nature-related Financial
Disclosures
TRIR: Total Recordable Incidents Rate
USAID: United States Agency for International
Development
WCR: World Coffee Research

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Annual Report 2023

JDE Peet’s
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Introduction

NON-IFRS DEFINITIONS
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Adjusted depreciation and amortisation (adjusted
D&A): Adjusted depreciation and amortisation isdefined as depreciation, amortisation andimpairment, adjusted for the depreciation,amortisation and impairment already included in theadjusting items as included in adjusted EBIT.
Adjusted EBITDA: Adjusted EBITDA are defined as
operating profit before depreciation, amortisationand impairment, adjusted for the same factors aslisted under adjusted EBIT.
Adjusted EBIT: Adjusted EBIT are defined as profit
for the period, adding back finance income, financeexpense, share of net profit of associates andincome tax expense adjusted for alternative
performance measures as included in the
consolidated financial statements for the year, note
2.1.
Adjusted gross profit: Adjusted gross profit isdefined as reported gross profit adjusted for thesame factors as listed under adjusted EBIT to theextent related to revenue and cost of sales.
Adjusted income tax expense: Adjusted income
tax expense is defined as income tax expense
adjusted for the effect of tax rate changes ondeferred tax assets/liabilities and the non-recurring
items, such as tax reserves and tax audit
adjustments.
Adjusted financial income and expense: Adjusted
financial income and expense is defined as financial
income and expense, adjusted for the effect of nonrecurring items such as the settlement benefits of

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the derivatives related to the legacy financing
structure in 2022.
Free cash flow: Free cash flow is defined as net
cash provided by operating activities less purchasesof property, plant and equipment and intangible
assets.
Net debt: Net debt is defined as total borrowings
less cash and cash equivalents, excluding cash notat the free disposal of the Company.
Net leverage ratio: Net leverage ratio is defined as
net debt divided by adjusted EBITDA of the lasttwelve months.
Operating working capital: Operating working
capital is defined as inventories and net tradereceivables net less trade payables.
Organic adjusted EBIT: Organic adjusted EBIT isdefined as adjusted EBIT translated at the prior year
average foreign exchange rate and adjusted for
scope changes (a.o. M&A, divestitures and new
business ventures) and other items. To determineorganic adjusted EBIT in a given year, adjusted EBITin that year is translated at the average foreignexchange rate of the comparable year and excludes
adjusted EBIT from acquired/divested companies
until 12 months following the transaction date.
Organic adjusted gross profit: Organic adjusted
gross profit is defined as adjusted gross profit
translated at the prior year average foreignexchange rate and adjusted for scope changes (a.o.
M&A, divestitures and new business ventures) andother items. To determine organic adjusted grossprofit in a given year, adjusted gross profit in thatyear is translated at the average foreign exchange

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rate of the comparable year and excludes grossprofit from acquired/divested companies until 12months following the transaction date.
Organic adjusted selling, general andadministrative expenses: Organic adjusted selling,
general and administrative ("SG&A") expenses aredefined as reported SG&A expenses translated at
the prior year average foreign exchange rate andadjusted for scope changes (a.o. M&A anddivestitures) and adjusted for alternative
performance measures.
Organic sales: Organic sales are defined asrevenue translated at the prior year average foreignexchange rate and adjusted for scope changes (a.o.
M&A, divestitures and new business ventures) andother items. To determine organic sales in a given
year, revenue in that year is translated at the
average foreign exchange rate of the comparable
year and excludes revenue from acquired/divested
companies until 12 months following the transaction
date.
Organic sales growth: Organic sales growth isdefined as the growth in organic sales between thegiven and comparable year.
Total liquidity: JDE Peet's considers total liquidity
to be the available cash and cash equivalents
recognised on the balance sheet (excluding
restricted cash) and the undrawn amount under the
revolving credit facility.
Underlying effective tax rate: The underlying
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effect of tax reserves, audit adjustments and the tax
effect of adjusting items.
Underlying income tax expense: Underlying
income tax expense is determined as the reported
tax expense normalised for the tax effect of tax
reserves, audit adjustments, reversals of previous
recognised deferred tax assets and the tax effect ofadjusting items.
Underlying profit: Underlying profit is defined as
adjusted EBIT for the period including adjusted
financial income and expenses, adjusted income tax
expense and adjusted for minority shareholders